Secondary steel-makers in Punjab have demanded a rollback of the steel ministry's quality control order, which makes it compulsory to produce Bureau of Indian Standards (BIS) certified steel items from September this year.
Upset over the new mandatory ISI certification, industry opined that new quality control order would hit the small steel producers hard as it would breed corruption and harassment, besides leading to hike in steel rates.
"We have urged the ministry of steel to withdraw this quality control order otherwise it will lead to closure of small units, corruption and hike in steel rates," confederation of indian steel producers association (CISPA) chairman Vinod Vashisht said on Thursday.
The ministry of steel has made it mandatory for secondary steel makers and rerolling mills to produce ISI certified construction steel like TMT bars, plates and rods from September 12 this year, he said.
In Punjab, there are over 150 rerolling mills spread in Mandi Gobindgarh, Khanna and Ludhiana which are engaged in manufacturing of various kind of iron and steel items for construction and light engineering sector.
"It is very difficult to produce certified steel in the absence of proper infrastructure required for the same," said federation of Punjab small industries association president Badish Jindal.
Moreover, he said, "It is very difficult for rolling mills to maintain BIS standard as their main raw material is either re-rollable steel or ingots produced in local furnaces."