The decision was taken at a meeting of its managing committee on September 19, 2016, it said in a statement.
Pahuja takes over from the outgoing President N C Mathur, it added.
A former Executive Director of state-run Steel Authority of India Ltd (SAIL), Pahuja was part of key strategic groups responsible for growth plans, product development and operating efficiencies.
With over 40 years of experience in steel industry, he has worked in operations, supply chain, coal management and policy formulation.
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Earlier this month, government extended the window for registration under QC Order by three months after several industry bodies approached the Steel Ministry on the matter.
This was following the tussle between the industry bodies, which had forced the Steel Ministry to set up a committee to look into the issue in August this year.
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