In its meeting held on February 25, 2003, the board of directors of Tata Sponge Iron Limited has decided to expand the sponge iron manufacturing capacity of the plant by installing a third kiln, having an annual capacity of 150,000 MT. Thegroundwork for this project is expected to begin in April 2003 and the plant is expected to be commissioned by March 2005.

This expansion will see the plant capacity increase by 62 per cent to 390,000 MT per year from the present 240,000 MT and will help the company to further consolidate its position as the largest supplier of quality sponge iron in east India and the second largest coal based sponge iron plant in India. The plant has already been declared as the producer of best quality sponge iron by consumers, as per a feedback survey conducted by an external agency.