Union Steel Minister Virbhadra Singh, while setting his priorities for the ministry, said the government would increase investment for the expansion and modernization of state-run steel plants to increase their production capacity and efficiency.

Mr. Singh, in his first visit to Himachal Pradesh after assuming charge of steel ministry, said, "Our main priority is to expand and modernize the state-run steel plants so that their capacity would be doubled."

Government intends to expand two state run steel plants namely Steel Authority of India Ltd (SAIL) and Rashtriya Ispat Nigam Ltd (RINL) in order to meet growing needs of steel for Indian industry.

The center may consider disinvestment of some state run firms subject to approval of union cabinet, despite possible resistance from opposition parties. However, the former CM of Himachal Pradesh, declined to divulge the name of companies to be considered for proposed disinvestment.

He also promised to setup a steel plant in his home state and said, "I have asked SAIL officials to conduct surveys so that its second steel processing plant in the state could come up near Nahan in Sirmaur district."

Mr. Singh warned companies against unilateral increase in steel prices, expressing satisfaction over prevailing steel prices in the market.