Power Sector Struggles Amid CRGO Steel Shortage

India's power sector faces challenges from a CRGO steel shortage, crucial for electric motors and transformers. The shortage, partly due to delayed import licenses, highlights the need for increased domestic production and streamlined regulatory processes to meet growing energy demands.

India's power ambitions are being tested by a critical shortage of Cold-Rolled Grain-Oriented (CRGO) steel, a key component in transformers and electric motors, according to the Global Trade Research Initiative (GTRI). The organization reports a glaring 30% deficit in CRGO steel, pivotal for expanding India's power infrastructure.

With local production barely scratching the surface of demand, providing only 10-12%, India heavily leans on imports. This reliance has been fraught with complications as delayed license renewals by the Bureau of Indian Standards (BIS) for major foreign suppliers create import bottlenecks.

The GTRI stresses the urgency of reviewing the BIS's import process to avert further disruptions. Meanwhile, founder Ajay Srivastava advocates for bolstering domestic manufacturing, warning that the ongoing shortage might derail India's energy objectives. The power sector's 2024 requirements far exceed domestic output, with significant portions imported from China, Japan, and other nations.

(With inputs from agencies.)