BIS Actions Create Major CRGO Steel Shortage, Threatens India's Power Sector Expansion

New Delhi, Jul 12 (KNN) The supply of Cold Rolled Grain Oriented (CRGO) Steel, a critical component in transformer manufacturing, has been severely disrupted that could significantly impact India's ambitious power sector expansion plans.

This shortage stems from recent actions taken by the Bureau of Indian Standards (BIS), which has either not renewed approvals, issued Stop Marking orders, or revoked approvals for several CRGO mills in neighbouring countries.

These affected mills previously accounted for approximately 45 per cent of India's CRGO requirements, creating a substantial gap in the supply chain.

The shortage has sent shockwaves through the power industry, with transformer manufacturers now grappling with procurement challenges and escalating prices.

Sources within the industry report that the remaining mills with valid BIS approval have already increased prices by USD 300-500 per metric ton, without guaranteeing material allocation.

Compounding the issue, some domestic mills have halted production entirely, while others are negotiating better prices for smaller quantities.

Industry experts warn that this situation could lead to delays in transformer deliveries, potentially derailing the country's power sector growth plans.

Some manufacturers are already describing the current circumstances as akin to a Force Majeure event, highlighting the severity of the supply chain disruption.

The shortage of CRGO steel is not just a concern for manufacturers; it has broader implications for India's energy infrastructure.

Transformers are essential components in power distribution networks, and any delay in their production and installation could hinder the country's ability to meet its growing energy demands.

The power sector anxiously awaits measures that could alleviate the shortage, stabilise prices, and ensure the continued growth of India's electrical infrastructure.

(KNN Bureau)