Exemptions for Import of Steel Grades and Stainless-Steel Flat Products

The Ministry of Steel, Government of India, has recently issued a series of orders aimed at addressing the challenges faced by the domestic steel industry and facilitating the import of specialized steel grades. These exemptions are designed to ensure the availability of critical steel products for various strategic sectors while supporting the ramp-up of domestic production. Below, we provide a detailed overview of the key decisions and their implications.

1. Exemption of Input Adherence for Stainless-Steel Flat Products 

Order Date: October 6, 2025 Validity: Till December 31, 2025

The Ministry of Steel has granted an exemption from mandatory input adherence for three Indian Standards (IS 6911, IS 5522, and IS 15997) related to stainless-steel flat products. This decision comes in response to representations from stainless-steel importers who highlighted the following challenges:

Advance Payments: Importers have already paid substantial advances to foreign manufacturers for future orders.
Domestic Shortage: The domestic availability of 200 and 300 series stainless-steel flat products is currently insufficient to meet demand.

This exemption will allow importers to procure stainless-steel flat products without adhering to the specified Indian Standards, providing temporary relief to the industry while domestic manufacturers work on ramping up production.

2. Exemption from NOC for Import of Steel Grades for Strategic Sectors 

Order Dates: September 27, 2025, and October 6, 2025 Validity: 6 months (subject to review)

The Ministry of Steel has issued two orders exempting the requirement for a No Objection Certificate (NOC) for the import of specialized steel grades. These exemptions are aimed at facilitating the import of steel products critical for strategic sectors such as defense, aerospace, automotive, power generation, and mining.

Key Highlights of the Orders:

September 27, 2025 Order:
- Scope: Exemption for 52 steel grades (listed in Annexure 1).
- Purpose: To support strategic sectors like defense, aerospace, renewable energy, and electronics.
- Conditions: The exemption is granted for specific quotas and end-use applications.
October 6, 2025 Order:
- Scope: Additional exemption for 14 steel grades (listed in Annexure 1 of the order).
- Purpose: To address the needs of sectors such as automotive, mining, and oil & gas.
- Conditions: The exemption applies to specific end-users and product details.

3. Annexures: List of Exempted Steel Grades 

September 27, 2025 Order: 

The list includes 52 steel grades such as:

Defense/Aerospace: Structural Alloy Steel (1.7734.5), Jethete M152 Stainless Steel, and HY 80 Grade Steel.
Renewable Energy: Continuous Cast Round Blooms/Bars (S355NL, 42CRMO4).
Electronics/IT: High Ni Alloy Strips (NAS 206 Mn, Alloy 36).
Oil & Gas: Stainless Steel Round Bars (UNS N08020, XM 19).

October 6, 2025 Order: 

The additional 14 grades include:

Automotive: Cold Rolled Stainless Steel Foils.
Mining: Hollow Drill Steel Rods (SANBAR20, SANBAR64).
Oil & Gas: Ni Base Valve Alloy Steel Bars (VAT200, VAT36).

Each grade is specified with its product description, quantity, end-use, dimensions, and product condition.

4. Implications of the Exemptions

For Importers:

Ease of Procurement: Importers can now source critical steel grades without the need for NOCs, reducing delays and administrative hurdles.
Cost Efficiency: The exemptions provide financial relief by allowing importers to fulfill existing contracts and meet demand without additional compliance costs.

For Strategic Sectors: 

Uninterrupted Supply: Sectors like defense, aerospace, and renewable energy will benefit from the timely availability of specialized steel products.
Enhanced Capabilities: The exemptions support the development of critical infrastructure and technology in strategic industries.

For Domestic Manufacturers:

Time to Ramp Up: The temporary exemptions give domestic manufacturers the opportunity to scale up production and address supply shortages.
Focus on Quality: Manufacturers can focus on meeting Indian Standards and improving product quality to compete with imports.

5. Conclusion

The Ministry of Steel’s proactive measures reflect its commitment to balancing the needs of importers, strategic sectors, and domestic manufacturers. By granting exemptions for input adherence and NOCs, the government aims to address immediate supply challenges while fostering long-term growth in the domestic steel industry.

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Source: Ministry of Steel

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