Bhilai plant has a capacity to produce 3.93-million tonnes per year at present.

The company''s board has given its in-principle approval to the proposed modernisation and expansion, SAIL said in a statement.
SAIL has appointed MECON as consultants for BSP''s expansion plan. This includes installation of a new blast furnace, new coke oven battery and a new sinter plant.

Post-modernisation, BSP would become a 100 per cent continuous casting plant with addition of a new four-million-tonne steel melting shop.

BSP produces long steel products, including rails.

The expansion plan envisages installation of a universal beam mill of one million tonne capacity to produce beams up to 1.1-metre depth. New bar and rod mill capacity of 0.9 million tonne will be created.
To meet the growing demand from railways, a new rail mill of 1.2 million tonne. capacity would also be installed.

The board of directors of SAIL had already given in-principle approval for expanding crude steel capacity at IISCO to 2.5 million tones, and of Bokaro Steel Plant to 7 million tonnes.

SAIL shares gained Rs1.75 or 1.57 per cent at Rs112.90 during intra-day trading on the Bombay Stock Exchange (BSE).