Orissa: Public Sector Steel maker Steel Authority of India (SAIL) announced its plans to expand its facility at the Rourkela Steel Plant by investing more than of Rs 7,800 crore. The capacity of RSP will be increased to 4 million tonnes per annum from current 2.2 million tonnes p.a. The expansion plan is expected to finish by June, 2010. The plant may also see newest technology and SAIL plans to invest in many other units as well.

SAIL has shown great results in the past few quarters. The PSU unit was making big losses for many years before the turn-around.

Company's director for personnel and raw materials G Ojha informed that the production capacity will be further increased in next decade. The development plan will be finished in phases.

As per statement of to Mr. Ojha, SAIL has plans to invest Rs 49,000 crore for expansion and modernization of in its different units and mines within the next three years. RSP expansion is just one of the projects which have been approved by the Board of Directors of SAIL.

Mr Ojha further added, "We want to retain our market share of 30% in India and remain the leader. We also plan to add new products to our basket to have a competitive edge over our rivals."

He expressed that there is no threat to the PSU from the entry of leading global steelmakers into the Indian markets. He is confident that SAIL has great product line and cost effective development environment. He said that the company welcomes new players.

Mr. Ojha also declined the reports that SAIL could face competition from units located in SEZ. He said, "We don't foresee any disadvantage because of SEZ."

The company also has plans to spend big amount on improvement of its mining operations at many locations. This includes over Rs 1,100 crore fresh investments in Orissa.