🇮🇳India

घरेलू स्टील आपूर्तिकर्ता एकाधिकार और मूल्य अधिमूल्य

3 verified sources

Definition

HRC steel trades at ₹800–815/tonne (as of 2025), but domestic-only sourcing rules prevent competitive tendering with international suppliers. Metallurgical coke shortages cited in search results further restrict domestic mill capacity. Fabricators cannot access cheaper regional suppliers (Vietnam, Thailand, Australia). Compliance with the policy enforces 'Melt and Pour' (100% Indian manufacturing), eliminating import arbitrage. Result: 2–5% price premium vs. pre-policy rates, plus 10–20% rush-order surcharges for expedited domestic availability.

Key Findings

  • Financial Impact: ₹2–8 lakhs annually for mid-sized fabrication shops (₹50–100 crores revenue). Large structural fabricators: ₹20–50 lakhs+ annually.
  • Frequency: Per procurement cycle; continuous impact from Q2 2025 onwards (policy effective April 1).
  • Root Cause: Government procurement mandate limiting supplier competition; domestic capacity constraints due to coke shortages; no approved alternative for Global Tenders <₹2 billion without ministerial waiver.

Why This Matters

The Pitch: Indian architectural and structural metal manufacturers waste 2–5% of material cost (approx. ₹2–8 lakhs annually for mid-sized fabrication shops) due to forced sourcing from a constrained domestic supplier pool. Transparent alternative sourcing and dynamic price benchmarking against international rates can recover this premium.

Affected Stakeholders

Procurement managers, Materials engineers, Project estimators, Finance (budget planning)

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

GST आयात-निर्यात और स्टील खरीद वर्गीकरण त्रुटि

₹5,000–50,000 per audit event (GST penalty + reversed ITC credit). Estimated 1–3 audits per financial year for active procurement departments.

धातुकर्म कोक की कमी और उत्पादन बोतलें

10–20% capacity utilization loss during shortage periods (estimated ₹3–10 lakhs monthly for mid-sized shops; ₹50–100 lakhs for large fabricators). Inventory carrying costs: 12–18% annually on excess working capital.

स्थानीय सामग्री सत्यापन और आपूर्तिकर्ता प्रमाणपत्र में देरी

40–60 hours monthly per procurement department (₹2,000–5,000 in opportunity cost). Procurement cycle extension of 20–40 days = ₹10–30 lakhs in working capital lock-up for a ₹5 crore project (12–18% annual opportunity cost).

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