The supply of Cold Rolled Grain Oriented (CRGO) steel, essential for transformer manufacturing, has been severely disrupted, impacting India’s power sector expansion plans, according to a report by local media platform, KNN.
This shortage arises from recent actions by the Bureau of Indian Standards (BIS), which has not renewed approvals or revoked licenses for several CRGO mills in neighboring countries. These mills previously supplied about 45pct of India’s CRGO needs, creating a significant supply gap.
As a result, remaining mills with valid BIS approval have raised prices by USD 300-500 per ton without guaranteeing material allocation. Some domestic mills have halted production, while others are negotiating for smaller quantities at higher prices.
The Indian Electrical and Electronics Manufacturers’ Association (IEEMA) has urged the Government of India to review these licensing issues and consider approving additional mills to address the growing demand-supply gap. Industry experts warn that these disruptions could delay transformer deliveries and jeopardize the country’s power sector growth plans, with some manufacturers likening the situation to a force majeure event.
