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Centre advances copper, nickel, aluminium quality control by 6 months
ECONOMY & POLICY

Centre advances copper, nickel, aluminium quality control by 6 months

04 Dec 2023 2 Min Read CW Team
The enforcement of quality control orders (QCO) on nickel, copper, and aluminium has been postponed by the centre for six months. The original date for the quality control orders to come into effect was December 1, 2023, but it has now been rescheduled to June 1, 2024. Quality control orders are implemented to prevent the import and sale of substandard products. The decision to impose these regulations was made on August 31 of this year.

According to a senior government official, "The Bureau of Indian Standards (BIS) is formulated in the country, but they are not made mandatory. This allows industries to sell products complying with different parameters or not apply for BIS certification." In September of this year that the initial months of QC enforcement could lead to disruptions in the supply chain. While standards for aluminium, nickel, and copper have been in place for some time, they are only now being made mandatory.

"People suddenly woke up when the enforcement of standards was announced. There have been representations from 64 domestic companies in the case of aluminium that they have sought BIS certification, which is pending approval," said the official. Additionally, the official mentioned, "Since copper is largely an imported commodity, there were representations from companies in Malaysia, and Japan among others, to seek more time."

Consultations were carried out with primary, secondary, and tertiary producers, as well as consumers such as the automobile sector, before the decision to defer was made. Inter-ministerial consultations also occurred, where the BIS itself supported the decision to extend the QCO implementation by six months.

The QC order covered copper, of which roughly half of India's demand is met through imports. The entire nickel requirement for the country comes from overseas. Currently, India imports more than 40% of its aluminium consumption in the form of alloy scrap.

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The enforcement of quality control orders (QCO) on nickel, copper, and aluminium has been postponed by the centre for six months. The original date for the quality control orders to come into effect was December 1, 2023, but it has now been rescheduled to June 1, 2024. Quality control orders are implemented to prevent the import and sale of substandard products. The decision to impose these regulations was made on August 31 of this year. According to a senior government official, The Bureau of Indian Standards (BIS) is formulated in the country, but they are not made mandatory. This allows industries to sell products complying with different parameters or not apply for BIS certification. In September of this year that the initial months of QC enforcement could lead to disruptions in the supply chain. While standards for aluminium, nickel, and copper have been in place for some time, they are only now being made mandatory. People suddenly woke up when the enforcement of standards was announced. There have been representations from 64 domestic companies in the case of aluminium that they have sought BIS certification, which is pending approval, said the official. Additionally, the official mentioned, Since copper is largely an imported commodity, there were representations from companies in Malaysia, and Japan among others, to seek more time. Consultations were carried out with primary, secondary, and tertiary producers, as well as consumers such as the automobile sector, before the decision to defer was made. Inter-ministerial consultations also occurred, where the BIS itself supported the decision to extend the QCO implementation by six months. The QC order covered copper, of which roughly half of India's demand is met through imports. The entire nickel requirement for the country comes from overseas. Currently, India imports more than 40% of its aluminium consumption in the form of alloy scrap.

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