Govt revokes QCOs on 7 key minerals after industry pushback, Pg 25

Key Highlights:

• The Ministry of Mines revoked Quality Control Orders (QCOs) on seven key minerals, including nickel, copper, and aluminium.
• This decision follows industry pushback and concerns raised in an unreleased Niti Aayog report.
• The Bombay Metal Exchange and the Bombay Non-ferrous Metals Association filed a petition in March against the QCO on copper.
• The initial QCO on copper was notified on August 31, 2023, to restrict substandard imports.
• The revocation aims to ensure smooth access to key minerals for Micro, Small and Medium Enterprises (MSMEs).

Detailed Insights:

• The revoked QCOs were impacting raw materials, intermediates, and capital goods, rather than finished consumer products, as highlighted by Niti Aayog.
• Trade associations argued that QCOs on copper cathodes led to shortages and were not in the public interest, leading them to take legal action.
• QCO implementation restricts the import, manufacturing, distribution, or sales of products without a Standard Mark from the Bureau of Indian Standards (BIS).
• Copper is classified as a critical mineral in India due to limited domestic production and high demand in various technologies.
• The removal of QCOs on minerals like lead and nickel is expected to stabilize input costs for battery makers and recyclers, supporting the growing energy-storage demand.

Key Concepts Involved:

• Quality Control Orders (QCOs): Mandates standards for products to ensure quality and safety, restricting non-compliant imports and sales.
• Critical Mineral: A mineral considered essential for a country's economic and national security, facing supply risks.
• Bureau of Indian Standards (BIS): The national standards body of India responsible for setting and enforcing quality standards.