Modernisation will help to reduce cost due to efficient use of energy thereby resulting in increased profitability. The annual production capacity of hot metal, crude steel and saleable steel is likely to increase to 2.45 million tonnes, 2.20 million tonnes and 2.12 million tonnes from 2.08 million tonnes, 1.80 million tonnes and 1.58 million tonnes at present, respectively. SAIL would form a joint venture with a Japanese firm named Kobe steel, to set a new mill at Durgapur plant.
The expansion plan for Durgapur steel plant would also get support from development of the Chiria mines (Jharkhand), which recently got approval from union environment ministry. After depletion of SAIL"s existing mines in the eastern region, the Chiria mines will be the only source of iron ore for SAIL"s four integrated steel plants at Bokaro, Burnpur, Durgapur and Rourkela.