Law Updates

Subject

Summary: The Ministry of Steel has revised the criteria for domestic status of the iron and steel products in regard to procurement by the Government of India. The new Notification G.S.R. 720(E) of August 7, 2026, has mandated that the Melt and Pour criterion will supersede the previous criteria of 50% Domestic Value Addition (DVA) for an extensive range of steel HS codes under the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy-2025. If your organization supplies steel products to the various government departments, PSUs, and public procurement projects, then it would be affected by this change in the definition of "made in India" in regard to its goods. This regulatory change is of high importance as it changes the criteria for your product to comply with in order to be considered "made in India". Not adhering to the compliance criteria will disqualify your tender or bid, or you may face a penalty for misrepresentation. Business organizations failing to identify which criteria to comply with in respect to HS code or failing to revise their internal procedures may lose out on government contracts. This is where professional regulatory consulting services can help you out. In this article, we provide you with an overview of the change and what you need to do. Key Highlights Here are the key highlights of the Melt and Pour amendment to the DMI&SP Policy that every steel manufacturer and government supplier should know. The Ministry of Steel issued Notification G.S.R. 720(E) on August 7, 2026, amending Appendix-A of the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy-2025. The original DMI&SP Policy-2025 was published earlier vide G.S.R. 904(E) dated December 17, 2025. For HS Codes 7301, 7302, 7303, and 7308 to 7326, the earlier requirement of "50% Domestic Value Addition" is now replaced with "Melt & Pour." "Melt & Pour" means the steel used to make these products must comply with the official melt-and-pour definition, and the entire product must be manufactured within India. A revised Appendix-A, listing 49 iron and steel product categories with their HS Codes and applicable condition, has been published along with the notification. Not all HS codes moved to Melt & Pour. HS Codes 7304, 7305, 7306, and 7307 (seamless tubes, welded pipes, and pipe fittings) continue to require 50% Domestic Value Addition. HS Codes 8605, 8606, and 8607 (railway/tramway coaches, goods wagons, and locomotive/rolling-stock parts) also remain under the 50% Domestic Value Addition condition. Appendix-A applies to iron and steel products that can only be procured from domestic sources under this policy, meaning imports are not permitted for these product categories under government tenders. All other provisions of the DMI&SP Policy-2025, apart from this specific change to Appendix-A, remain unchanged. The notification is signed by Abhijit Narendra, Joint Secretary, Ministry of Steel, under File No. 8(2)/2023-ID-I. This amendment affects steel manufacturers, fabricators, traders, EPC contractors, and any business that supplies iron and steel products for government projects, PSU tenders, or infrastructure contracts. The Regulatory Framework Understanding the regulatory framework behind the DMI&SP Policy and this Melt and Pour amendment helps businesses see exactly where this notification fits within India's steel procurement rules. Issuing Authority: Ministry of Steel, Government of India Notification: G.S.R. 720(E), dated August 7, 2026, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) Parent Policy: Domestically Manufactured Iron & Steel Products (DMI&SP) Policy-2025, originally notified vide G.S.R. 904(E) dated December 17, 2025 What the DMI&SP Policy Does: The DMI&SP Policy sets out which iron and steel products, when required for government procurement, must be sourced only from domestic (Indian) manufacturers. Appendix-A of this policy is the list of these products, identified by their HS Code, along with the "condition" that determines whether a product counts as domestically manufactured. Scope: This regulation covers iron and steel products classified under certain HS Codes for flat-rolled steel, bars and rods, wire, structural steel, tubes and pipes, containers, chains, springs, household articles of iron and steel, and specified parts of railway rolling stock. Industries Covered: Steel manufacturers, steel fabricators, structural steel suppliers, pipe and tube manufacturers, wire and rod producers, railway component suppliers, and any business bidding for government or PSU contracts involving these steel products. Purpose of Appendix-A: This is because the purchase of such items will be restricted to domestic purchases only, implying that government procurement officers will not import such items if there are other domestically compliant items in the market. What Has Changed? Here is exactly what has changed under the DMI&SP Policy Appendix-A, and how the new Melt and Pour condition compares with the earlier Domestic Value Addition requirement. Before this amendment, most products under Appendix-A had to meet a 50% Domestic Value Addition (DVA) condition to qualify as "domestically manufactured." This meant at least half the value of the product had to be added within India, even if some raw material or semi-finished input came from abroad. Under the new rule, for the HS Codes listed below, this value-addition-based test has been dropped in favour of a process-based test: Melt & Pour. Under Melt & Pour, the origin of the steel is decided by where the steel was actually melted and cast, not by how much value was added afterwards. The notification clarifies that the steel used must meet the melt-and-pour definition, and the finished product must be entirely made within the country. Previous Rule vs New Rule Aspect Previous Rule (Before Aug 7, 2026) New Rule (From Aug 7, 2026) Applicable Condition 50% Domestic Value Addition Melt & Pour Basis of Compliance Value of inputs added in India Where the steel was melted and cast, plus full domestic manufacturing HS Codes Affected 7301, 7302, 7303, 7308–7326 7301, 7302, 7303, 7308–7326 Codes Unaffected (still 50% DVA) 7304, 7305, 7306, 7307, 8605, 8606, 8607 7304, 7305, 7306, 7307, 8605, 8606, 8607 Governing Notification G.S.R. 904(E), dated December 17, 2025 G.S.R. 720(E), dated August 7, 2026 HS Codes Now Under "Melt & Pour" This condition now applies to a wide range of products, including: Flat-rolled iron/non-alloy steel and stainless-steel products (HS 7208–7212, 7219, 7220) Bars, rods, wires, angles, shapes and sections (HS 7213–7217, 7221–7223, 7227–7229) Alloy steel flat-rolled products (HS 7225, 7226) Sheet piling, welded structural sections (HS 7301) Rails and railway/tramway track construction material (HS 7302) Cast iron tubes, pipes and hollow pipes (HS 7303) Structures and parts of structures (HS 7308) Reservoirs, tanks, vats and containers (HS 7309–7311) Wire ropes, cables, barbed wire, fencing, chains, anchors (HS 7312–7316) General articles of iron and steel, springs, stoves, radiators, tableware, sanitary ware, and cast articles (HS 7317–7326) HS Codes That Remain Under "50% Domestic Value Addition" •    Seamless tubes, pipes and hollow profiles (HS 7304) •    Welded/riveted circular tubes and pipes over 406.4 mm diameter (HS 7305) •    Other tubes, pipes and hollow profiles (HS 7306) •    Tube and pipe fittings, such as connectors, couplings and elbows (HS 7307) •    Railway/tramway passenger coaches, not self-propelled (HS 8605) •    Railway/tramway goods vans and wagons, not self-propelled (HS 8606) •    Parts of railway/tramway locomotives or rolling stock, such as bogies, axles and forged wheels (HS 8607) Supplying steel to government tenders? Verify whether your primary mill source meets the new Melt & Pour criteria. [Schedule a Compliance Audit with Corpseed]. Implementation Timeline / Norms Below is the implementation timeline for the Melt and Pour DMI&SP Policy amendment, along with the compliance norms businesses need to follow going forward. Effective Date: The amendment takes effect from the date of publication in the Gazette of India, i.e., August 7, 2026. Relevance: The above-mentioned modified clause is applicable for procurement of goods made of iron & steel that come under the relevant HS codes where the policy on Direct Material and Steel Procurement ("DMI&SP Policy") is applicable, for example, Government Departments, PSU procurements, and projects where there is a need for "Make in India" compliance for steel. Action Required by Business: Suppliers/manufacturers dealing in relevant HS codes must review the compliance documents they currently hold and ensure whether their steel is molten/poured in India or not. Continuity of Other Provisions: The notification specifically states that all other provisions of the DMI&SP Policy-2025, including the rest of Appendix-A, remain unchanged. Businesses dealing in HS codes 7304–7307 and 8605–8607 continue to follow the 50% Domestic Value Addition requirement as before. Why Was This Implemented? Below are the likely reasons behind the government's move to replace Domestic Value Addition with the Melt and Pour standard for steel procurement. The notification itself does not spell out a detailed statement of objects and reasons. Still, the shift from a value-based test to a Melt & Pour standard reflects a broader intent commonly associated with domestic steel procurement policy: Stronger domestic manufacturing check: A Melt & Pour standard ties "Indian origin" directly to where the steel is actually produced, rather than to how much value is added in later processing stages. Support for India's primary steel industry: By anchoring the domestic-content test to the melting and casting stage, the policy aims to support demand for steel that is genuinely produced from Indian furnaces, not merely finished or assembled in India using imported steel. Simplification of compliance verification: A process-based test such as Melt & Pour can be easier to verify through mill certificates and production records compared to calculating value addition percentages across a supply chain. Alignment with public procurement priorities: The change fits within India's broader public procurement framework that gives preference to domestically manufactured goods in government purchases. Impact on Businesses Below are the benefits, risks, and operational effects this Melt and Pour compliance shift brings for different types of steel businesses. Manufacturers: Steel manufacturers producing goods under the affected HS codes must now demonstrate that their steel was melted and poured in India, and maintain supporting production records, rather than relying solely on value-addition calculations. Importers: The companies importing semi-finished steel or parts and completing processing in India will have to review whether their supply chain continues to remain "domestic" as per the Melt & Pour criterion because even further processing of melted steel imported from outside does not satisfy this requirement. Exporters: Although this regulation applies to the domestic government procurement process and not exportation, the exporters operating domestically within the relevant HS Codes will also have to pay attention to this difference. Brand Owners and OEMs: Companies that source finished steel products under their own brand for supply to government buyers must confirm their vendors' steel meets the Melt & Pour standard for the applicable HS codes. MSMEs and Startups: Fabricators and Manufacturers of Structural Products: Small fabricators and manufacturers of steel products for government contracts need to verify if the raw steel material they use comes from a mill that is melting and casting within India, as this will be a determining factor instead of added value. Large Enterprises: Larger integrated steel producers with in-house melting and casting facilities are likely to find this transition more straightforward, but must still update internal certification processes to reflect the new condition. Traders and Distributors: Trading businesses supplying listed steel products to government buyers need updated compliance declarations from their manufacturing sources to pass on accurate certification. Retailers: Businesses supplying iron and steel articles such as household hardware, sanitary ware, or general iron/steel goods (HS 7317–7326) to government institutions should confirm their supply chain's compliance status under Melt & Pour. Service Providers and EPC Contractors: Contractors executing government infrastructure projects that specify DMI&SP-compliant steel must ensure their material suppliers meet the applicable condition for each HS code used in the project, since a mix of "Melt & Pour" and "50% DVA" codes may apply within the same project. Operational, Legal, Financial and Documentation Impact: Some companies will have to renegotiate their contracts with vendors, change self-certification forms in tender documents, and in some cases re-examine sourcing relations involving imported semi-finished steel. How Businesses Will Achieve Compliance? Below is a step-by-step DMI&SP compliance roadmap to help steel manufacturers and suppliers align with the new Melt and Pour requirement. Identify Applicable HS Codes:  Map your products against the HS codes listed in the revised Appendix-A to determine whether the Melt & Pour condition or the 50% Domestic Value Addition condition applies. Review Supply Chain Origin:  Trace where the steel used in your product is melted and cast, not just where it is processed or assembled. Obtain Mill Certification:  Secure documentation from your steel supplier confirming melt-and-pour origin within India, where applicable. Update Vendor Declarations:  Revise self-certification formats used in government tenders to reflect the correct condition (Melt & Pour or 50% DVA) for each HS code supplied. Maintain Production Records:  Keep records that can demonstrate compliance if questioned during tender evaluation or audit. Segregate Sourcing for Mixed Portfolios:  If your business supplies products across both Melt & Pour and 50% DVA categories, maintain separate documentation trails for each. Review Ongoing Contracts:  Check whether existing government contracts or tenders in progress require updated compliance declarations under the amended Appendix-A. Train Procurement and Compliance Teams:  Ensure teams involved in tender submissions understand the distinction between the two conditions and apply the correct one per HS code. Common Mistakes to Avoid:  Applying the old 50% DVA logic to HS codes that have now moved to Melt & Pour; assuming imported semi-finished steel qualifies simply because further processing happens in India; and submitting outdated certification formats in tender bids. Since HS codes 7304-7307 and 8605-8607 remain on the 50% DVA standard, businesses handling a mixed product range should clearly separate their compliance approach by HS code rather than applying a single rule across their entire catalogue. Benefits for Businesses Below are the benefits businesses can gain by staying compliant with the Melt and Pour requirement under the DMI&SP Policy. Clearer Compliance Test: A process-based Melt & Pour standard can be more straightforward to demonstrate than calculating value addition percentages. Reduced Ambiguity in Tenders: Clearer domestic-origin criteria can reduce disputes during tender evaluation. Market Access: Businesses that genuinely melt and pour steel within India gain a clearer path to qualify for restricted government procurement categories. Support for Backward Integration: Companies with in-house melting and casting capacity may find themselves better positioned compared to those relying on imported semi-finished steel. Business Continuity: Staying updated on the correct condition for each HS code helps avoid last-minute disqualification from government tenders. Right Decision or Additional Burden? Below is a balanced look at whether the Melt and Pour rule works in favour of steel businesses or adds to their compliance burden. Advantages: The rule offers a more direct, verifiable link between "Made in India" claims and actual domestic steel production. For businesses with fully integrated Indian steel-making operations, this can simplify compliance since production records may be easier to maintain than detailed value-addition calculations across multiple supply chain stages. Issues: Firms that rely on imported semi-steel materials as their input, even if there is an appreciable value addition through fabrication and finishing done in India, could be denied the "domestic" status by virtue of this test. Compliance Costs: It takes both time and money to revise one’s documentation, certification process, and possibly supplier sources, especially for companies which have to switch their suppliers to satisfy the Melt & Pour criteria. Business Preparedness: Those firms which are buying their steel products directly from domestic mills equipped with full Melt & Pour facilities would probably adjust easily. Those relying on importing their required steel would take more effort to adapt. Long-Term Impact: Over time, this policy direction may encourage greater investment in domestic steel-melting capacity among businesses seeking continued access to government procurement contracts. Business Opportunities Created Below are the new business opportunities this DMI&SP Policy amendment opens up for domestic steel manufacturers and suppliers. Government Tenders: Businesses that can clearly demonstrate Melt & Pour compliance may find a more level playing field in bidding for government contracts requiring the affected HS codes. Domestic Manufacturing Expansion: The policy may create an incentive for businesses to invest in or partner with domestic melting and casting facilities. Supply Chain Realignment: Companies re-evaluating their sourcing strategy have an opportunity to build stronger relationships with compliant domestic steel producers. Compliance Consulting Demand: As businesses adjust documentation and sourcing to meet the new standard, there is growing need for expert guidance on correctly classifying products, verifying supplier compliance, and preparing tender-ready certification. Why Choose Corpseed? Below is why steel manufacturers and government suppliers across India rely on Corpseed for DMI&SP Policy and Melt-and-Pour compliance support. Understanding exactly which HS codes fall under Melt & Pour versus 50% Domestic Value Addition, and correctly documenting compliance for each, can be time-consuming for businesses focused on their core operations. Corpseed works with manufacturers, traders, and government suppliers to review product classifications against policy requirements, prepare accurate compliance documentation, and support certification and vendor declaration processes needed for tender submissions. Corpseed's team tracks regulatory notifications like this one as they are published, so businesses do not have to monitor gazette updates themselves. From identifying the correct HS code condition applicable to your product, to assisting with documentation and liaison where needed, Corpseed aims to reduce the compliance burden so businesses can focus on winning and executing government contracts rather than navigating paperwork. Support is available across India, with dedicated experts guiding the process from assessment through to submission. Corpseed's Core Message Below is why acting early on this steel policy compliance update can protect your government contract pipeline. Regulatory changes like the Melt & Pour amendment can directly affect your eligibility for government contracts if not handled correctly and on time. Misclassifying your product's compliance condition, or submitting outdated certification, can lead to bid rejection or disqualification during tender evaluation. If your business supplies iron and steel products under the HS codes affected by this notification, it is worth getting your compliance position reviewed before your next tender submission. Getting professional guidance early can help you avoid delays, reduce the risk of penalties for incorrect declarations, and keep your government contract pipeline moving smoothly. Talk to Corpseed's regulatory compliance experts today to review your steel product classification and ensure your DMI&SP Policy compliance is tender-ready.