Anti-Dumping Probe on Critical Steel Triggers Fears Over Transformer Costs and India's Grid Expansion Targets

Anti-Dumping Probe on Critical Steel Triggers Fears Over Transformer Costs and India's Grid Expansion Targets​

A potential move to impose anti-dumping duties on Cold-Rolled Grain-Oriented Electrical Steel (CRGO) has raised significant alarms over the cost of transformer manufacturing and the pace of India's vital power grid expansion, cautioned the Global Trade Research Initiative (GTRI). Since CRGO constitutes nearly 90 per cent of the domestic supply required for transformers, market watchers fear that such a duty could compromise ambitious infrastructure projects.

Directorate General of Trade Remedies Initiates Probe Against Imports​

The Directorate General of Trade Remedies (DGTR), an arm of the commerce ministry, has initiated an anti-dumping investigation targeting imports of CRGO and amorphous metals. These materials are being scrutinized in relation to exports from China, Japan, Korea, and Russia.

The probe was launched following a complaint filed by JSW JFE Electrical Steel Nashik Pvt Ltd. The formal investigation commenced on June 22, 2026. It covers imports spanning the period from April 1, 2025, to March 31, 2026. Injury analysis for this sector covers data collected between 2022-23 and 2024-25.

Extreme Import Dependency Highlights Critical Supply Gap​

GTRI emphasized that India possesses an overwhelming dependency on foreign sources for specialized steel required in power generation. Every power and distribution transformer relies on CRGO steel within its magnetic core to ensure efficient electricity transmission and minimize energy loss.

The current annual consumption of CRGO is estimated between 4,00,000 and 4,50,000 tonnes. Against this vast demand, domestic production currently ranges only from 40,000 to 50,000 tonnes. This imbalance confirms that nearly ninety per cent of India's requirements are met through imports, primarily sourced from China, Japan, South Korea, and Russia.

Impact of Duties on Ambitious Grid Expansion Plans​

The initiation of the anti-dumping probe has prompted concern among experts. GTRI founder Ajay Srivastava stated that imposing duties on a material for which India imports nearly ninety per cent of its needs could elevate transformer costs while failing to materially reduce import dependence.

India plans significant investment into grid infrastructure, targeting an expansion by 2032. This planned outlay includes investing ₹ 9.15 lakh crore, adding 1,91,000 circuit kilometres of transmission lines, and doubling the capacity of transformers to reach 2,342 GVA (Gigavolt-Amperes).

Industry Developments and Quality Standards​

The specialized nature of CRGO was noted by GTRI. This product is crucial for efficient electricity distribution. As a result, imported coils are already subject to mandatory quality certification from the Bureau of Indian Standards (BIS) before they can be sold domestically.

Srivastava pointed out that this context establishes the investigation as a dispute concerning pricing rather than product quality. The material was also explicitly excluded from safeguard duties because of India's persistent reliance on imports for its manufacturing needs. Furthermore, Jsquare Electrical Steel Nashik Pvt Ltd, a subsidiary of JSW JFE Electrical Steel Pvt Ltd, has recently acquired thyssenkrupp Electrical Steel India Pvt Ltd, which manufactures grain-oriented electrical steel in Nashik.