Expedite NOCs for steel consignments, significant challenges being faced

Context: The Engineering Export Promotion Council (EEPC) on Thursday expressed
concerns over restrictions on steel shipments at Indian ports and urged the
government to expedite the issuance of No Objection Certificates (NOCs) for
steel consignments, alongside implementing other measures to support Micro,
Small & Medium Enterprises (MSMEs) in the steel sector. EEPC members have
pointed out that Quality Control Committee meetings are not being held as
frequently as required, leading to delays in the issuance of NOCs for steel consignments
and these delays are causing substantial disruptions to business operations.

Key points

·       Overview: The Global
Trade Research Initiative (GTRI) noted that India’s steel industry focuses on
low-margin products while relying on imports for specific applications. The
report highlights the need for a balanced approach that addresses the needs of
both large producers and small steel-using industries.

·       Global
Trade Research Initiative (GTRI): Global Trade Research
Initiative (GTRI) is a research Group focused on Climate Change, technology and
trade. GTRI aims to create high-quality and jargon-free outputs for governments
and industry from the perspective of development and poverty reduction.

·       Steel
Import Monitoring System’ 2.0 portal: It features API integration
with multiple government portals, enhancing quality control and streamlining
processes for improved efficiency and effectiveness. The portal boasts a robust
data entry system, ensuring consistent and authentic data, which promotes
transparency and accountability. Integration of various databases enable
stakeholders to locate areas of risk and, thereby, permit better risk
management.

·       Significance
of the Indian steel sector: Contribution to GDP - The steel sector
contributes about 2% to India's GDP and accounts for about 7% of its industrial
output. The sector also generates employment for about 2.5 million people
directly and indirectly.

Support to
infrastructure development - The steel sector plays a vital role in building and
maintaining India's infrastructure such as roads, bridges, dams, airports,
ports, etc. The sector also supports the development of renewable energy
sources such as solar and wind power.

Enhancement of
national security - The steel sector provides strategic materials for
India's defence and aerospace sectors such as armour plates, bulletproof vests,
missiles, rockets, satellites, etc. The sector also helps in reducing India's
dependence on imports for critical defence items.

·       Government
initiatives to support the sector: The government has taken
several steps to support and promote this sector, such as-

Steel Scrap
Recycling Policy - The Steel Scrap Recycling Policy, which was
announced by the Government of India in November 2019, aims to promote the
scientific processing and recycling of ferrous scrap from various sources, such
as end-of-life vehicles (ELVs), white goods, construction and demolition waste,
etc.

Ø  Vehicle
scrapping centres - One of the key features of the policy is the
establishment of vehicle scrapping centres across the country, which will
facilitate the collection and recycling of ELVs.

National Steel
Policy 2017 - The National Steel Policy 2017 (NSP 2017) is a strategic plan to boost
the growth and development of the steel industry in India. It was launched by
the Minister of Steel in 2017.

Ø  DMI
& SP Policy - One of the initiatives taken under the policy is
the Policy for providing preference to Domestically Manufactured Iron and Steel
Products (DMI & SP Policy) in government procurement.