The Power Ministry has forwarded a proposal to the Steel Ministry for setting up a facility for the domestic production of CRGO (Cold Rolled Grain Oriented) steel.

The facility will either be set up by SAIL or a private sector steel company. At present the government is working out its economic feasibility.

The move has come in the wake of growing demand for CRGO steel and India needs to plan its supply and availability. Demand for CRGO is expected to cross two lakh tonne by 2011-12. Currently, India imports its entire requirement of about 1.8 lakh tonne.

With the Eleventh Plan targeting the addition of 78,577 MW of power generating capacity, the demand for transformers is set to rise. CRGO steel is used in the manufacturing of power equipment like transformers and large generators.

The transformer makers may get some relief after Thyssem Krupp begins production of this material at its Nashik steel plant which is presently in the process of commencing trial production.