Ministry Of Steel Relaxes BIS Order On Stainless Steel Input Material One Day Before The Hearing In Madras High Court
Ministry of Steel relaxes BIS order on stainless steel input material one day before the hearing in Madras High Court
On 13 June 2025, the Ministry of Steel (“MoS”) issued Order F.No. S-20011/15/2024-TECH, mandating that stainless steel intermediate and raw materials such as slabs and HR/CR coils also obtain Bureau of Indian Standards (“BIS”) certification, in addition to finished products. This marked a significant departure from the Master Steel Quality Control Order (“Master Steel QCO”) issued on 29 August 2024, which had confined BIS certification requirements to only finished stainless steel goods listed under Schedule I, while Schedule II separately covered only a limited category of intermediate raw materials which required certification.
The abrupt policy shift caused considerable disruption to several MSMEs, including M/s Shree Ramdev Metalex LLP (SRM), whose shipments worth several crores were already contracted or in transit at the time. Aggrieved, SRM challenged the MoS Order dated 13 June 2025 before the Hon’ble Madras High Court, raising multiple legal and procedural grounds. Upon finding a prima facie case and balance of convenience in favour of SRM, the Hon’ble Madras High Court granted an interim stay on the operation of the MoS Order dated 13 June and injuncted all government authorities from taking any coercive action in furtherance thereof.
The Union of India subsequently preferred a Special Leave Petition [SLP (C) No. 20571/2025] before the Hon’ble Supreme Court. The Supreme Court, without expressing any opinion on the merits of the case, set aside the interim stay and injunction, and remanded the matter to the Hon’ble Madras High Court on the ground that the earlier stay order had been passed without recording detailed reasons.
While the remanded matter remained pending and was listed on multiple subsequent dates without an effective hearing, the MoS, in the interim, issued Order F.No. S-20011/15/2024-TECH-Part(1) dated 6 October 2025, granting a temporary exemption from mandatory input adherence for three Indian Standards namely, IS 6911, IS 5522, and IS 15997 pertaining to stainless-steel products, until 31 December 2025. This relaxation effectively covered key raw materials used by the stainless-steel re-rolling industry in India.
Thereafter, the matter was taken up before the Hon’ble Madras High Court on 8 October 2025, where certain impleadment applications were allowed, and the parties were directed to complete their submissions before the next date of hearing.
DSK Comments
The Ministry of Steel’s recent relaxation may have offered the downstream stainless-steel industry a temporary breather and ease immediate raw material shortages. But this is only a band-aid on a deeper regulatory wound.
As DSK Legal is representing SRM before the Hon’ble High Court of Madras, it will not be appropriate to comment on the issues which are sub-judice, however, there are substantial concerns specifically of the MSME industry on account of demand-supply gap as India’s domestic mills simply do not have the capacity to meet even existing demand, let alone the rising needs of downstream MSMEs.
Data shows that between 2020 and 2024, the consumption gap in stainless-steel raw materials widened dramatically from 0.14 million tonnes to 0.86 million tonnes. Imports have consistently filled this deficit, serving not as surplus inflows but as a lifeline that keeps production lines running and prices stable.
It is to be noted that since 13 June 2025 when the above MoS Order was first implemented, imports have fallen by more than 50%, triggering a severe demand-supply imbalance. Domestic prices have since spiked by USD 250–300 per metric ton, a bonanza for intermediate raw material suppliers but a crippling blow for downstream MSMEs in the stainless steel sector. The resulting volatility has stalled production, inflated costs, and left smaller manufacturers scrambling for survival.
Therefore, it is imperative that before the implementation of the BIS standard, the Government must acknowledge and address this demand-supply gap. Equally important, before reinstating the QCO in full force, the Government must engage in meaningful stakeholder consultation. It must reassess whether extending quality control to intermediate raw materials serves any real value when product quality is already ensured at the finished-goods stage, the point at which the consumer ultimately interacts with the market.
Until then, regulatory zeal without ground reality will continue to produce policy paralysis and the stainless-steel industry, particularly its downstream MSME backbone, will keep paying the price.
Industry Perspective
The temporary exemption may offer some relief to downstream stainless-steel manufacturers facing raw material shortages. However, concerns remain over the demand-supply gap, as domestic mills lack sufficient capacity to meet rising demand. Data indicates that the consumption gap in stainless-steel raw materials widened from 0.14 million tonnes in 2020 to 0.86 million tonnes in 2024, with imports filling the deficit. Since the implementation of the June 13 order, imports have fallen by more than 50%, causing domestic prices to spike by USD 250–300 per metric ton, impacting MSMEs in the sector.
Litigation Lead Comments
According to Mr. Ashish Chandra, the partner leading the litigation, regulatory measures without adequate stakeholder consultation could continue to disrupt production and inflate costs for smaller manufacturers. He emphasized that government policies must address the demand-supply gap before implementing quality control mandates on intermediate raw materials.
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