The China Iron and Steel Association and the Indian Steel Alliance have formed a joint working group on steel to discuss cooperation between the two countries in the sector.

The working group was formed at a meeting between CISA and ISA in Beijing today that coincided with the 'Made in India' show organised by the Confederation of Indian Industry.

The industry level group is being set up to address issues and discuss specific areas of cooperation between India and China in the sector.

CISA Chairman Wu Xichun said the working group will serve to establish a formal link between the two countries.

A Chinese delegation will also visit India in December this year as a next step in the process, Xichun further said.

The discussions will revolve around five specific areas, Xichun added.

Potential of export for the next two to three years, establishment of long-term contract for import of iron ore from India, expansion of long-term purchase of iron ore and establishment of a joint venture in India for iron-ore are being proposed. Reviewing the trade in iron and steel and cooperation on issues relating to multilateral agreements are the other areas of discussion.

Joint secretary of ministry of steel, D V Singh, informed CISA members that India is formulating a national policy on steel.

He also said India encouraged trade with China and the government was not inclined to introduce any control on the steel industry.

India exports 10 per cent of its produced steel, of which 1.5 million tonne goes to China. Exports have increased from 10,000 million tonne to 1.5 million tonne in recent times.

The ISA delegation was led by chairman J J Irani, SAIL chairman V S Jain, Tata Steel managing director B Muthuraman, J Mehra of Essar Steel, V S S Rao of Rashtriya Ispat Nigam Ltd and representatives from JVSL and Ispat.