Six years after their umbrella body was disbanded, leading steel makers on Friday got together to float an apex body to spearhead their grievances and issues plaguing the industry. However, they decided to seek legal opinion first.
At a meeting, CEOs of state-run and private steel companies told steel secretary G Mohan Kumar that they need an apex organisation under which they could work jointly to resolve the critical hurdles hampering execution of greenfield and brownfield projects.
It is learnt that while there was unanimity on setting such up such a body, some CEOs insisted on soliciting opinion of eminent lawyers to ensure that it stands up to legal scrutiny. After the meeting ended, top officials of some participating firms is learnt to have met Competition Commission chief Ashok Chawla to ascertain his views on their move.
The decision to seek legal opinion comes in the wake of their earlier apex organisation Indian Steel Alliance (ISA) being disbanded in 2008 after its leading members such as Tata Steel and Steel Authority of India opted out of it. There was a growing perception that the ISA appeared to be a cartel of the steel companies.
The move also comes at a time when a new government would be formed following completion of the ongoing Lok Sabha polls and the proposed common platform should be equipped to take the challenges being encountered by the steel industry with the new dispensation.