+
Port delays and red tape strain India’s 10,000 steel user units
Steel

Port delays and red tape strain India’s 10,000 steel user units

Over 10,000 steel user units in India are grappling with operational and financial difficulties due to significant port delays and complicated regulatory hurdles, according to the Global Trade Research Initiative (GTRI). These challenges have started to take a toll on the production and export capabilities of several industries reliant on imported steel. GTRI has called on the Indian government to streamline import processes and digitize systems to provide much-needed relief to the sector.

The think tank highlighted that policies aimed at protecting domestic steelmakers, such as import restrictions and quality control measures, have unintentionally hurt industries that rely on imported steel for manufacturing. These regulations, while beneficial to local producers, have caused severe delays in shipments and increased costs for companies using steel in their production processes.

In a statement, GTRI Founder Ajay Srivastava emphasized that over 10,000 steel user units are currently facing severe financial strains, threatening their ability to remain operational and continue exporting goods. These industries, which play a critical role in India’s manufacturing sector, are finding it increasingly difficult to maintain supply chains due to the excessive scrutiny of imports.

One of the key factors contributing to these delays is the government’s Steel Import Monitoring System (SIMS), which requires detailed declarations of steel imports before they arrive in the country. However, the process has led to confusion, as customs officials have extended these requirements beyond the steel products subject to quality control orders (QCOs), demanding unnecessary No Objection Certificates (NOCs) from the Bureau of Indian Standards (BIS) for items that do not fall under these regulations. The delay in obtaining NOCs from BIS has led to longer clearance times at ports, further straining the steel user units.

Additionally, the Steel Ministry’s SIMS system, designed to monitor steel imports, has often malfunctioned, causing delays and complications in the clearance process. GTRI has urged the government to implement clearer, more efficient procedures for monitoring imports, as well as focusing on digitizing the clearance system to reduce bottlenecks.

The think tank also pointed out that Free Trade Agreements (FTAs) need to be carefully reviewed. Some FTAs have allowed foreign producers to re-import steel at concessional rates, raising concerns about the growing competition faced by domestic steelmakers. GTRI stressed that if import restrictions are necessary, they should be enforced through well-defined policies rather than through procedural roadblocks that disrupt the smooth functioning of the sector.

In conclusion, GTRI called for reforms in the steel import process, suggesting that the government must focus on developing a framework that supports both domestic steelmakers and industries dependent on steel imports. Without these improvements, the think tank warned, India’s broader manufacturing sector and its global manufacturing aspirations could face significant challenges.

Over 10,000 steel user units in India are grappling with operational and financial difficulties due to significant port delays and complicated regulatory hurdles, according to the Global Trade Research Initiative (GTRI). These challenges have started to take a toll on the production and export capabilities of several industries reliant on imported steel. GTRI has called on the Indian government to streamline import processes and digitize systems to provide much-needed relief to the sector. The think tank highlighted that policies aimed at protecting domestic steelmakers, such as import restrictions and quality control measures, have unintentionally hurt industries that rely on imported steel for manufacturing. These regulations, while beneficial to local producers, have caused severe delays in shipments and increased costs for companies using steel in their production processes. In a statement, GTRI Founder Ajay Srivastava emphasized that over 10,000 steel user units are currently facing severe financial strains, threatening their ability to remain operational and continue exporting goods. These industries, which play a critical role in India’s manufacturing sector, are finding it increasingly difficult to maintain supply chains due to the excessive scrutiny of imports. One of the key factors contributing to these delays is the government’s Steel Import Monitoring System (SIMS), which requires detailed declarations of steel imports before they arrive in the country. However, the process has led to confusion, as customs officials have extended these requirements beyond the steel products subject to quality control orders (QCOs), demanding unnecessary No Objection Certificates (NOCs) from the Bureau of Indian Standards (BIS) for items that do not fall under these regulations. The delay in obtaining NOCs from BIS has led to longer clearance times at ports, further straining the steel user units. Additionally, the Steel Ministry’s SIMS system, designed to monitor steel imports, has often malfunctioned, causing delays and complications in the clearance process. GTRI has urged the government to implement clearer, more efficient procedures for monitoring imports, as well as focusing on digitizing the clearance system to reduce bottlenecks. The think tank also pointed out that Free Trade Agreements (FTAs) need to be carefully reviewed. Some FTAs have allowed foreign producers to re-import steel at concessional rates, raising concerns about the growing competition faced by domestic steelmakers. GTRI stressed that if import restrictions are necessary, they should be enforced through well-defined policies rather than through procedural roadblocks that disrupt the smooth functioning of the sector. In conclusion, GTRI called for reforms in the steel import process, suggesting that the government must focus on developing a framework that supports both domestic steelmakers and industries dependent on steel imports. Without these improvements, the think tank warned, India’s broader manufacturing sector and its global manufacturing aspirations could face significant challenges.

Next Story
Infrastructure Energy

Tata Power, Suzlon Ink Rs 60 Billion Wind Energy Deal in Andhra

Tata Power has signed an agreement with Suzlon Energy to develop, construct, and supply 700 megawatt (MW) wind turbines in Andhra Pradesh. The Rs 60 billion project forms part of a 7 gigawatt (GW) renewable energy plan announced by Tata Power Renewable Energy (TPREL) and the state government in March 2025.This marks the first wind energy project in the state since 2019. The larger 7 GW programme, covering solar, wind, and hybrid projects with or without storage, is expected to attract investments of around Rs 490 billion, making it one of the state’s largest clean energy commitments.The turb..

Next Story
Infrastructure Transport

Odisha Approves Rs 12.6 Billion For 32 New Bridges

Odisha is set for a major infrastructure boost with the approval of 32 new bridges under the Setu Bandhan Yojana for FY 2025–26. The project, valued at Rs 12.6 billion, is aimed at improving road connectivity across ten districts, enhancing mobility and driving local development.The bridges will be constructed in Bolangir, Subarnapur, Nayagarh, Sambalpur, Malkangiri, Bargarh, Koraput, Jagatsinghpur, Cuttack, and Puri. Many of these areas are rural or located in difficult terrains, where improved accessibility will greatly benefit the transportation of goods and public mobility.Setu Bandhan Y..

Next Story
Infrastructure Transport

UP Plans Rs 350 Billion Gorakhpur–Shamli Expressway

Uttar Pradesh is preparing to build its largest expressway, a 700-km six-lane project that will surpass the 570-km Ganga Expressway from Meerut to Prayagraj. Designed as a greenfield project, the Gorakhpur–Shamli Expressway will cut travel time between eastern and western Uttar Pradesh to just six hours, transforming regional connectivity.The expressway will pass through 22 districts and 37 tehsils, bringing faster travel and significant economic benefits, including higher land values for farmers and employment opportunities during and after construction. A drone survey to map the route is e..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?