The government will fast-track Bureau of Indian Standards (BIS) approvals for Taiwanese integrated steel plants, enabling micro, small, and medium enterprises (MSMEs) to import raw material under the quality control order (QCO) issued in June, according to two people aware of the matter.

The steel ministry is working on securing these clearances to support MSMEs in importing intermediate steel products, adding value, and boosting exports. During consultations in late August, MSME importers flagged delays in approvals for Taiwanese plants, some pending since July. Imports from Taiwan have stalled since the QCO came into effect in June.

“Some plants in Taiwan qualify as integrated steel mills but are awaiting approvals. The government is now expediting BIS clearances,” said one of the people.

Queries sent to the Union steel ministry remained unanswered at press time. Meanwhile, Indian importers who have already paid advances are facing supply delays. For MSMEs, imports of cheaper steel remain critical, as domestic producers charge higher prices, squeezing margins.

The 13 June notification mandated BIS certification for all imported raw material used in steel production. The order covered stainless steel slabs, hot rolled and cold rolled coils, and required BIS certification for imports with a bill of lading dated on or before 16 June.

The issue is significant as Taiwan is a key source of semi-finished and intermediate steel. Data from the Steel Import Monitoring System (SIMS) portal shows Taiwan consistently ranking fifth or sixth in India’s finished steel imports, after South Korea, China, Japan, and Vietnam.

“Taiwan’s speciality steel industry is important. MSMEs have long depended on imports as Indian manufacturers sell at higher prices. But larger Indian steel firms also face export barriers, as seen in Japan where financial scrutiny makes approvals difficult. At the same time, India’s QCOs hurt smaller import-reliant firms,” said A.S. Firoz, former chief economist at the Economic Research Unit, steel ministry.

The Federation of Associations of Maharashtra (FAM), in a 18 June letter, noted that around Rs 1.5 billion in advance payments was at risk due to the QCO. Shree Ramdev Metalex LLP has since challenged the 13 June order in the Madras High Court, arguing it contravenes the BIS Act, 2016, and BIS Rules, 2018.

In June 2025, 0.797 million tonnes of finished steel imports were registered under 25,759 applications, as per SIMS data. Korea accounted for 34.6 per cent of imports, followed by China at 30.6 per cent. The automobile and auto components industry led demand with a 29.1 per cent share.