Anti-Dumping Probe On Electrical Steel Could Hit Transformer Costs, Slow Grid Expansion: GTRI

New Delhi, Jun 26 (KNN) Any move to impose anti-dumping duties on cold-rolled grain-oriented electrical steel (CRGO) could push up transformer manufacturing costs and slow India's power grid expansion, think tank Global Trade Research Initiative (GTRI) warned on Friday.

The Directorate General of Trade Remedies (DGTR) initiated an anti-dumping investigation on June 22 against imports of CRGO and amorphous metals from China, Japan, South Korea and Russia, following a complaint by JSW JFE Electrical Steel Nashik Pvt Ltd. 

The investigation covers imports from April 2025 to March 2026, while the injury analysis spans 2022-23 to 2024-25.

Duties Could Raise Prices Without Reducing Dependence

GTRI founder Ajay Srivastava said, "The move (initiation of the probe) has raised concerns that imposing anti-dumping duties on a product for which India imports nearly 90 per cent of its requirements could increase transformer costs and slow the country's ambitious power-grid expansion," PTI reported.

He noted that with domestic output meeting less than one-tenth of national demand, higher duties could raise prices without materially reducing import dependence, potentially slowing investments in transmission infrastructure, renewable energy integration and electricity distribution.

Highlighting that CRGO imports are subject to mandatory Bureau of Indian Standards (BIS) certification, Srivastava said, "Every imported coil must meet Indian standards before it can be sold, making the investigation a dispute over pricing rather than product quality. The product was also excluded from safeguard duties because of India's continued dependence on imports."

Why CRGO Matters for India's Power Sector

CRGO steel is used in the magnetic cores of every power and distribution transformer, minimising energy losses and enabling efficient electricity transmission. 

Demand for the material is expected to rise sharply as India invests Rs 9.15 lakh crore to expand its power grid by 2032, adding 1,91,000 circuit kilometres of transmission lines and more than doubling transformer capacity to 2,342 gigavolt-amperes.

India's annual CRGO consumption is estimated at 4,00,000 to 4,50,000 tonnes, against domestic production of only 40,000 to 50,000 tonnes. Nearly 90 per cent of requirements are met through imports, primarily from China, Japan, South Korea and Russia.

(KNN Bureau)