Steel makers agree to form association

Domestic private and public sector steel makers agreed to form an association to fight common challenges at a meeting held here today in the presence of Steel Secretary G Mohan Kumar.
The decision to set up the association, the brainchild of JSW Steel Chairman Sajjan Jindal, was unanimously approved, a source present at the meeting told PTI.
"The association has taken shape and it has been decided that the secretariat would be based out of Delhi. The dos and don'ts of the association have also been put together," the source said.
The office-bearers are yet to be chosen, he said.

The formation of the group comes after the Indian Steel Alliance (ISA) dissolved in 2008 as leading members such as Tata Steel and Steel Authority of India (SAIL) opted out.
Incorporated in October 2001 as an umbrella body of leading domestic steel makers, ISA's objective was to promote the usage of steel and development of the industry, among other goals.

"The association would not be a copy of ISA. It will be slightly different," the source said when asked about its role and functions. He declined to elaborate.
After the meeting, steel makers met Competition Commission of India Chairman Ashok Chawla to ascertain if its activities comply with fair-trade norms, the source said.

The common platform would be used to take on various challenges together and work with the new government at the Centre to find ways to achieve production of 300 million tonnes of steel per annum targeted by 2025 from about 95 million tons now.
The grouping will strive to promote steel consumption, which is low in India, and campaign for "infrastructure" status for the industry.
India's per capita consumption of steel in 2012 was about 57 kg, compared with the global average of 217 kg, according to the World Steel Association.
The steel makers will seek exemption for steel from free-trade agreements, especially with Japan and South Korea, to ensure that the alloy is not "dumped" in the country.

It will ask for ministerial help to ensure sustainable promotion of steel exports and to counter trade retaliatory measures on outbound shipments.
The federation also wants bans on the export of mineral resources and the use of asbestos.