New Delhi : State-run metal major Steel Authority of India Ltd (SAIL) will invest Rs.112.62 billion in the modernisation and technological upgradation of its Bhilai Steel Plant (BSP) in Chhattisgarh.

The upgradation is aimed at hiking plant's capacity to produce crude steel from 3.93 million tonnes to seven million tonnes, said a SAIL statement Wednesday.

The expansion and upgradation plan for the BSP includes installation of a new blast furnace, a seven-metre-tall coke oven battery and a new sinter plant. A brand new steel melting shop of four million tonnes capacity will also be built.

To meet the growing demand of Indian Railways, a new universal rail mill of 1.2 million tonnes capacity with state-of-art technology will be installed, the statement said.