Expedite NOCs for steel consignments, significant challenges being faced: EEPC

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Last Updated07/12/2024

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.

The Engineering Export Promotion Council (EEPC) has raised urgent concerns about delays and restrictions affecting steel shipments at Indian ports, highlighting the impact on Micro, Small, and Medium Enterprises (MSMEs). This issue underscores broader challenges in balancing the interests of large steel producers, smaller engineering exporters, and global competitiveness.

Delays in No Objection Certificates (NOCs):
- Engineering exporters face significant disruptions due to delays in obtaining NOCs for steel consignments.
- Infrequent Quality Control Committee meetings exacerbate the issue, causing backlogs at ports.
- Japanese steel shipments have also been held up, raising diplomatic concerns and signaling broader inefficiencies.
Proposed Safeguard Duties on Steel Imports:
- Engineering exporters warn that safeguard duties could increase domestic steel prices, rendering their products less competitive globally.
- Steel constitutes up to 60% of production costs for engineering goods, making price stability critical.
Skewed Policies Favoring Large Firms:
- Current antidumping measures selectively exclude certain countries, benefiting large producers but harming smaller businesses.
- SMEs and engineering exporters, reliant on imported specialized steel, are disproportionately affected.

Streamlining Import Processes:
- Expedite NOC issuance by increasing the frequency of Quality Control Committee meetings.
- Ministry of Commerce and Industry should collaborate with the Ministry of Steel to address systemic delays.
Revisiting Safeguard Duties:
- Targeted subsidies or incentives for domestic steel producers can reduce reliance on broad protectionist measures.
- This approach ensures affordability for MSMEs while supporting local production.
Encouraging High-End Steel Production:
- India’s reliance on imports for specialized steel underscores the need for investment in advanced production technologies.
- Supporting MSMEs through training, financial aid, and technology sharing can bridge the gap.
Ensuring Fair Competition:
- Rationalize antidumping duties to include imports from major supplying nations like Indonesia and Vietnam.
- Policies should balance the interests of large producers and SMEs to foster equitable growth.
The Way Forward
- India’s steel sector is a critical driver of economic growth, but its potential is hindered by policy inefficiencies and imbalances. Addressing these challenges requires a nuanced approach that supports MSMEs, encourages high-value steel production, and ensures global competitiveness for engineering exports.
- By fostering collaboration and fairness across the value chain, India can transform its steel industry into a robust pillar of sustainable development.