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Implementation of Quality Control Order w.e.f. 1st April, 2014

As you are kindly aware, over the years, the Induction furnace Industry has expanded considerably and made its presence felt in the Indian Steel Sector, apart from playing a major role in the economic progress of the country. AIIFA is an effective link and medium of communication between the Induction melting furnace units and various Ministries of Government of India, Professional Institutions and R&D Centres.
You are also aware that, Quality Control order (Phase - IV) is going to be implemented finally w.e.f. 1st April, 2014, has made BIS mandatory for all manufacturers with a provision of penalty and Prosecution for the defaulters. Definitely, this order would ensure the availability of quality steel across the country while empowering the consumers of steel.
In this context, AIIFA had meet with various officials of Ministries and try to convenience them to consider the genuine problems of Induction Furnace industries and requested to first provide some necessary basic infrastructure and R&D to Induction Furnaces units before implementing the order (for e.g. providing Testing labs across the country, Providing newer technology through which percentage of sulphur and phosphorus can be controlled, providing good quality of raw material such as sponge iron etc., otherwise, it has resulted in status-co situation and industries will face a lot of issues and problems to abide by this order.
Accordingly, Ministry of Steel has taken initiatives and approves four R&D projects which are in the process of identifying the proven energy efficient technology option for the Induction Furnace sector and will be start very shortly.
Now we come to the point, recently, a meeting was held on 6th March, 2014 in the steel room, under the Chairmanship of Shri U P Singh, Joint Secretary, Ministry of Steel, Government of India, (where senior officials from BIS were also present) in order to review the status of implementation of the Steel Quality Control Order and related issues.
During the meeting, AIIFA again requested for further extension of the date of the implementation in view of the following major issues:

  • BIS authorities have not granted licenses in-spite of their best efforts particularly in Rajasthan(Jaipur/Bhiwadi) where the authorities are stipulating additional conditions unlike in other region
  • Centralised laboratories have not been setup which are required for small Re-Rolling Mill and IF units but also for third party check.
  • High Phosphorus remains a problem in the Induction Furnace units and R&D work has not been completed yet.
  • The marking clause in the BIS standard for sponge iron is missing and sponge iron is not covered under the Quality Control Order which needs to be expedited before QC order is enforced on the steel products.

 AIIFA have also pointed out that, there have been requirements/conditions in the tenders issued by various agencies (especially for the TMT product)  that restrict our members to participate in the same. The requirement in the tender should be uniform and that should be only for ISI products. However. it is suggested that, all Government organizations and PSU’s should be directed to accept any material passing through BIS quality check and preferred vendor list should be banned. Further, BIS should take initiative in this regard to promote and educated the buyer for acceptance of ISI mark product without specifying the name of any specific company as well as any production route.
The Chairman said that at this stage, it is necessary for the Government to fully implement the order but at the same time we cannot ignore the difficulties being faced by the industry in the implementation of the order. Ministry of Steel will review the same and take a final decision accordingly. He also requested BIS to look in to the issue of non-granting of license by BIS authorities in Rajasthan.
You are also aware that, 28th AGM cum one day National Conference on "Cost Optimization in Secondary Steel Sector" which was held on 10th March, 2014 at Hotel Le-Meridien, New Delhi. The seminar was inaugurated by Mr. G. Mohan Kumar, Secretary (Steel), Ministry of Steel, Government of India, as a Chief Guest and Mr. Syedain Abbasi, Joint Secretary, (Steel) and Mr. Srinivasan Iyer, Asst. Country Director & Head Energy and Environment unit, UNDP, India as the Guest of Honour. Beside this,  Mr. K K Garg, President, AIIFA, Mr. A. C. R. Das, Consultant, Ministry of Steel, Mr. Kamal Aggarwal, Sr. Vice President AIIFA,  Mr. R K Bagchi, Director , NISST, were also present.
During the address, AIIFA once again highlighted the issues which are hindering the growth of this sector and needed to be addressed by the Government of India.
Since, Quality Control Order is going to be implemented finally w.e.f. 1st April, 2014 and you are well aware about the adverse impact of implementation of such an order, resulting may be in closure of this sector also. Therefore, it is requested to kindly furnish the following detail:
1.      Name and Address of the organization
2.      Date of Application received at BIS
3.      Date of License granted by BIS if any
4.      Reason for Rejection if any
On the basis of your feedback/suggestion, AIIFA would like to meet with BIS authorities to discuss and resolve the issues.
Thanking You,
Kamal Aggarwal
Sr. Vice President
M: 9810234886

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