The Ministry of Road Transport and Highways has issued orders that all steel – whether produced from ore, billets, pellets or melting of scrap – would be allowed to be used for National Highway construction, as long as it meets the standards required for specific grades of steel, the Government of India (GoI) informed on Sunday.
The GoI in a press release said that the steel proposed to be used would be tested in NABL-accredited laboratories as a third-party check before approval.
The move is based on the analysis and discussions with stakeholders and also technical opinion. Earlier, the contract provisions required the use of steel produced by primary/integrated steel producers only.
“In view of the increase in steel prices, which can impact the cost of building national highways, Union Minister for Road Transport and Highways, Nitin Gadkari had suggested the need to re-look at all conditions which could be restrictive, without impacting the quality of material used for highway construction,” the release said.
With this step, the supplier base for steel used in the construction of national highways would increase, leading to more competition and better price discovery by the markets, the release added.
This is also part of the continuous effort by the Minister to reduce costs through the use of new technology, reducing restrictions on suppliers and making the procurement system transparent.
