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India's Power Grid Faces Crisis: Anti-Dumping Duty Fears
26 Jun
Summary
- Anti-dumping probe on electrical steel could raise transformer costs.
- India imports 90% of electrical steel, domestic production is low.
- Grid expansion faces slowdown due to potential duty on imports.
India's power sector is at a critical juncture as an anti-dumping investigation into cold-rolled grain-oriented electrical steel (CRGO) imports looms. This specialized steel is vital for efficient electricity transmission and distribution, forming the magnetic core of all transformers. The Directorate General of Trade Remedies initiated the probe on June 22, 2026, following a complaint from JSW JFE Electrical Steel.
With annual CRGO consumption at 400,000-450,000 tonnes and domestic production only 40,000-50,000 tonnes, India imports nearly 90% of its requirement. This heavy reliance on countries like China, Japan, South Korea, and Russia has raised concerns. Experts warn that imposing anti-dumping duties could escalate transformer costs and decelerate the planned expansion of India's power grid.
India aims to invest Rs 9.15 lakh crore by 2032 to expand its grid, adding significant transmission lines and doubling transformer capacity. However, imposing duties on essential imports could hinder this growth. Experts note that CRGO imports already meet stringent BIS quality standards, suggesting the dispute is over pricing rather than quality, potentially impacting renewable energy integration and overall electricity distribution.
JSW JFE Electrical Steel Nashik Pvt Ltd, a subsidiary of JSW JFE Electrical Steel Pvt Ltd, recently acquired thyssenkrupp Electrical Steel India Pvt Ltd, which has a GOES manufacturing facility in Nashik, Maharashtra. This domestic manufacturing capacity, though limited, exists alongside the ongoing import reliance and the current trade investigation.
