The Hindu Business Line : India invited to join OECD’s steel panel

New Delhi, Dec. 27 The Government has said that it is ready to join the Organisation for Economic Cooperation and Development’s (OECD) Steel Committee provided no additional conditions are imposed over and above the obligations under the World Trade Organisation (WTO).

Confirming the development, Mr R.S. Pandey, Secretary, Ministry of Steel, told Business Line that they have received an invitation to join the OECD’s Steel Committee. “Although we have agreed to the proposal, we have said that no conditions should be imposed over and above the obligations under the WTO. If they agree to this, we have no problem in joining the committee,” he added.

Currently, India is an observer on the committee and if the proposal is accepted then it would become a full-time member.

With its 30 members and observers including India, China and Russia, the committee accounts for around 65 per cent of the world’s steel production and 80 per cent of global steel exports.

China, Russia

China, which has also been invited to join the committee, is looking at considering the proposal, while Russia is understood to be willing to join.

“The invitation has come because India is currently undertaking a massive capacity expansion programme and is slated to be the world’s second biggest steel producer in the next few years. So that is why the OECD is keen that we be a part of the Steel Committee,” Mr Pandey said.

Revised estimates

Last year, based on the revised estimates, India was the fifth largest producer of steel. “By the end of 2011-12, we expect the production level to be around 124 million tonnes (mt) and even if we achieve 90 per cent capacity utilisation it will be 110 mt,” he said.

In the last couple of years, the OECD has emerged as a platform where multilateral steel problems are discussed and solutions to these problems have been worked out.

Earlier this month, the committee’s Chairman, Mr Risaburo Nezu, had said that India’s production continued to increase during the year, driven by strong demand.