New Delhi: Ispat Industries Ltd yesterday (Dec 5, 2006) announced an investment of over Rs 80 bn in expanding its steel making capacity in sync with major acquisition and expansion drive by Indian steel manufacturers.

As part of the first phase expansion the company would invest Rs 20 bn for raising steel making capacity of its Dolvi plant in Maharashtra to 5 million tonnes from 3 million tonnes now, Ispat said in a statement here.

As part of its effort to consolidate its position, Ispat would in subsequent phases invest another Rs 60 bn to double the capacity to 10 million tonnes.

To kick start the Phase I of expansion Ispat signed a memorandum of understanding with Maharashtra government to expand capacity at its Dolvi plant, which was set up at an investment of over Rs 100 bn.