The Indian transformer manufacturers are expecting another 6000 tonne of silicon steel from Japan and European countries within the next two quarters in this fiscal. Earlier, they had already received 3000 tonne through MMTC.

"Collectively, the transformer manufacturers along with IEEMA approached MMTC to secure this order from Japan," says P.S. Jagdish, President, Indian Transformer Manufacturers' Association.

It is learnt that Japan is willing to supply silicon steel in bulk quantities, but not lesser amounts. The transformer industry believes that the recent order of 3000 tonnes of silicon steel bagged by MMTC is not sufficient for the domestic manufacturers and traders. An industry source stated, "Only smaller traders will be benefited as most of this steel is being distributed to small manufacturers and traders by Nippon Steel's agent in India." It has also been alleged that this premium quality silicon steel is being partially distributed and large manufacturers are sourcing small quantities. "We the actual manufacturers are still hungry as we aren't receiving the desired quantity of silicon steel," said a spokesperson (who asked for anonymity) of a leading transformer manufacturer. It is said that Mahindra Steel Service Centre Ltd is the genuine agent of Nippon Steel, who is selling silicon steel to the transformer manufacturers in India.

When Electrical Monitor contacted Mahindra Steel, a spokesperson confirmed this and said they were the agents and acted on behalf of Nippon Steel in India. However, the spokesperson denied commenting anything on the ongoing issue.

Meanwhile, not all transformer manufacturers feel the shortage of silicon steel a bane. "Customers are willing to pay higher prices, so shortage is not much of a problem for us," said Vinamra Agarwal, Director, Technical Associates Ltd.

[16-30 June 2006]