Revocation of QCOs Boosts Key Mineral Access in India
The Indian Ministry of Mines has taken a significant step by revoking Quality Control Orders (QCOs) on seven key minerals, which include essential elements like nickel, copper, and aluminium. This decision comes after months of resistance from the domestic industry, highlighting the need for smoother access to these vital resources.
The rollback of the QCOs aims to alleviate supply chain disruptions, especially for Micro, Small, and Medium Enterprises (MSMEs). These businesses often struggle with sourcing critical materials needed for production. The changes are expected to stabilize input costs in a market that is increasingly demanding energy-storage solutions.
Earlier, the Ministry had also rolled back 14 QCOs impacting various sectors, including textiles, which faced challenges due to high tariffs on exports. The Ministry's actions reflect a broader understanding of the importance of accessibility to raw materials for industrial growth in India.
According to a report from Niti Aayog, many QCOs adversely affected raw materials and intermediates rather than finished consumer products. This has raised concerns among trade associations, leading to legal actions to challenge restrictive measures like the QCOs on copper cathodes. Industry leaders argue that such orders lead to shortages that are detrimental to public welfare.
Copper, classified as a critical mineral in India, is essential for various technologies, including electric vehicles, air conditioners, and renewable energy systems. The country heavily relies on imports to meet its copper needs due to limited domestic production. Revoking the QCO is expected to protect access to global nickel markets, critical for sectors like defense manufacturing and advanced engineering.
Ajay Srivastava, head of the think tank GTRI, emphasized the significance of lead in batteries used for telecom and renewable energy applications. By removing the QCO, the government is making a move to secure a more stable supply of key materials, thus promoting innovation and growth in critical industries.
Overall, this decision represents a proactive approach by the government to support the manufacturing sector and ensure that industries can thrive in a competitive global market.
