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[ferro-alloys.com] Imported steel must undergo a minimum prescribed value addition of 15 per cent in order to be eligible for procurement by government departments, the steel ministry said today. 

"All imported steel must undergo a minimum prescribed value addition of 15 per cent ... in order to be eligible for bidding under the policy," the ministry said in a statement. 

The government in May had approved the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy for providing preference to locally produced iron and steel products. 

The policy mandates to provide preference to domestic products in government procurement. 

"Even in mix comprising imported and domestic steel, imported portion should separately meet the minimum prescribed value addition criteria of 15 per cent," the ministry clarified. 

The policy provides preference to domestically manufactured iron and steel products valued at Rs 50 crore or more in government procurement. 

However, some stakeholders like railways and ONGC had raised concerns over supply of special grade products not produced in India. 

To address the concerns, a standing committee headed by Steel Secretary was formed to examine the issue. The panel had said waivers for special grades not manufactured in the country will be granted only after review.

• [Editor:Wang Linyan]