Continuing imports of defective CRGO will ruin Indian Transformer industry: ITMA
Updated: Dec 24, 2014 03:29:33pm
New Delhi, Dec 24 (KNN) Instructions from Department of Revenue and Quality Control Order of Steel Ministry notwithstanding, the import of defective seconds CRGO steel is continuing leaving Transformer manufacturers fuming.
“The image of Indian Transformer industry has taken a beating both at home and abroad because of use of substandard quality of CRGO steel and Indian manufacturers are blacklisted in several countries in Africa and Middle East” according to Anil Agarwal, President of Indian Transformer Manufacturer Association (ITMA).
According to him, corruption and unfair trade practices like these are biggest handicap in realizing Prime Minister Modi’s ‘Make in India’ dreams.
CRGO steel, a critical raw material used for lamination in Transformers, is not manufactured in India and is almost entirely imported. The quality of the special grade steel having a direct bearing on the quality of transformers, Ministry of Steel had issued a quality control order in 2012 mandating the imported CRGO steel to meet a specified BIS quality standard.
As Customs officials largely ignored the order, Transformer manufacturers approached Department to Revenue which issued instructions in 2014 banning imports without prescribed BIS certificate.
“When we pressed for compliance of order, the imports of defective steel was stopped at major parts, but it started getting cleared at smaller ports and later at the dry ports presumably in connivance of customs and unscrupulous dealers”, Agarwal added.
According to industry sources, lately the Dadri dry port (Noida, Uttar Pradesh) has become major entry point for import of substandard CRGO steel.
Now, to circumvent the quality control order, the dealers declare CRGO steel as ‘transformer parts’ in the invoice and the bill of lading which is patently fraudulent. ITMA has demanded that government should take steps to effectively implement its own orders. (KNN/AB)
“The image of Indian Transformer industry has taken a beating both at home and abroad because of use of substandard quality of CRGO steel and Indian manufacturers are blacklisted in several countries in Africa and Middle East” according to Anil Agarwal, President of Indian Transformer Manufacturer Association (ITMA).
According to him, corruption and unfair trade practices like these are biggest handicap in realizing Prime Minister Modi’s ‘Make in India’ dreams.
CRGO steel, a critical raw material used for lamination in Transformers, is not manufactured in India and is almost entirely imported. The quality of the special grade steel having a direct bearing on the quality of transformers, Ministry of Steel had issued a quality control order in 2012 mandating the imported CRGO steel to meet a specified BIS quality standard.
As Customs officials largely ignored the order, Transformer manufacturers approached Department to Revenue which issued instructions in 2014 banning imports without prescribed BIS certificate.
“When we pressed for compliance of order, the imports of defective steel was stopped at major parts, but it started getting cleared at smaller ports and later at the dry ports presumably in connivance of customs and unscrupulous dealers”, Agarwal added.
According to industry sources, lately the Dadri dry port (Noida, Uttar Pradesh) has become major entry point for import of substandard CRGO steel.
Now, to circumvent the quality control order, the dealers declare CRGO steel as ‘transformer parts’ in the invoice and the bill of lading which is patently fraudulent. ITMA has demanded that government should take steps to effectively implement its own orders. (KNN/AB)
Loading...
