FMAI and LUB Raise Major MSME Concerns: Steel Price Regulation, Revival of CLCSS and Cancellation of Impractical BIS QCOs

Ludhiana: The Fasteners Manufacturers Association of India (FMAI), in association with Laghu Udyog Bharati, organised an important meeting on Thursday at Hotel Nirvana Gateway to highlight critical challenges faced by Micro, Small and Medium Enterprises (MSMEs) and seek urgent intervention from the Government of India.
The meeting was graced by Sunil J. Singhi, Chairman, National Trade Welfare Board, Government of India, as the Chief Guest. The discussions focused on rising raw material costs, regulatory challenges, and the need for practical policy measures to protect and strengthen MSME manufacturing units.
Urgent Need for Regulation of Steel Prices
FMAI highlighted that steel prices have reportedly increased by approximately ₹14,000–₹15,000 per tonne over the last three to four months, placing enormous financial pressure on fastener manufacturers.
The Association expressed concern that even public sector steel enterprises, including Steel Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited (RINL), have increased prices, adding to the burden on downstream MSMEs.
FMAI emphasised that public sector enterprises must remain sensitive to the needs of smaller industries, which contribute significantly to employment generation and national industrial development. The Association demanded an appropriate regulatory or monitoring mechanism to ensure transparent pricing, fair market practices, and a stable supply of steel at reasonable prices.
The Association warned that continued price volatility is eroding profit margins, disrupting existing contracts, increasing working capital requirements, and pushing several MSME units towards financial distress and potential closure.
Revival of CLCSS with an Enhanced Limit of ₹5 Crore
FMAI strongly urged the Government to revive the Credit Linked Capital Subsidy Scheme (CLCSS) to support machinery modernisation and technology upgradation. The Association requested that the maximum eligible project limit be enhanced to ₹5 crore, enabling MSMEs to adopt advanced machinery, improve productivity, and compete effectively in domestic and international markets.
Demand for Cancellation of Impractical BIS Quality Control Orders (QCOs)
FMAI expressed serious concern over the implementation of BIS Quality Control Orders (QCOs), stating that the current certification framework is highly complex, costly, and difficult for many MSME units to comply with.
The Association highlighted that high certification fees, expensive testing procedures, extensive documentation, and limited access to suitable laboratories make BIS certification financially and operationally unviable for numerous small manufacturers.
FMAI stated that mandatory compliance requirements, without adequate consideration of the financial and technical capacities of MSMEs, risk forcing smaller units out of business and creating barriers to fair competition.
The Association therefore demanded the cancellation of impractical BIS QCOs affecting MSME manufacturers, particularly where compliance is not reasonably achievable due to cost, infrastructure, or procedural complexities. FMAI urged the Government to undertake a comprehensive review and develop a simplified, affordable, and MSME-friendly regulatory framework that protects product quality without threatening the survival of small industries.
Appeal to the Government
FMAI and Laghu Udyog Bharati appealed to the Government of India to address these issues on priority and introduce practical measures to protect MSME manufacturers, safeguard employment, encourage modernisation, and strengthen India’s manufacturing ecosystem.
The Association reaffirmed that a sustainable MSME sector is essential to achieving Aatmanirbhar Bharat and a globally competitive Indian manufacturing industry.
Present on the occasion were Tarun Jain - President - Laghu Udyog Bharti, Bunty Oberoi - Vice President - FMAI, Atul Sethu - Vice President- FMAI, Honey Sethi, Jugal Kishore Arora- Finance Secretary - FMAI, Rachhpal Bhamra, Harpreet Singh, Gurpal Singh, Gaurav Arora, N P Singh, Mangal Sain, Davinder Udehra, Dr. Rachna Sharma, Rajeev Jian and many more