Indian transformer makers oppose quality control order

Economic Times reported that electrical transformer manufacturers in India claim that a steel ministry proposed quality mandating certification would impact 60% of India's transformer makers.

Mr Rohit Aggarwal, secretary general of All India Lamination & Stamping Manufacturers Association said that "India still doesn't produce electrical steel because we lack the technology and it requires a huge investment. In recent years, China has become a big player, having set up several units to make electrical steel.”

According to Mr Aggarwal, this would be another means of global steelmakers controlling the Indian market. Mr Agarwal said that “These mills will also get a channel to ship secondary material into India through their steel centres, under the garb of prime material.”

LASTMA said the move will lead to cartelization and impact power projects. The association feels that it will encourage import of Chinese made transformers.

The association claimed that electrical steel imports total 250,000 annually, amounting to 6,000 crore at current INR 130 per kg (USD 2000 per tonne). Of this, only 80,000 tonne is of prime quality.

The ministry's new quality norms order of March 14 includes CRGO and CRNO steel. The new norms require electrical steelmakers to be certified by the Bureau of Indian Standards before September 12, 2012.

Mr Dalip Singh joint secretary in the ministry of steel said that the move was in the larger interest of public safety and to push for better quality steel. He said that "68% of the material used in transformers in India, is sub standard. It has led to motors that don't last three months, transformers that burn causing damages of several crores.”

Source - Economic Times