Steel Authority of India Ltd, the country's largest steelmaker, will invest a massive Rs 100,000 crore (Rs 1,000 billion) for expanding capacity to 40 million tonnes by 2020, Steel Minister Ram Vilas Paswan announced in New Delhi on Friday.

The state-run giant currently has a production capacity of 14.6 million tonnes. The company has already announced its expansion plan till 2010, by which it would scale up the capacity to 23.8 million tonnes at an investment of about Rs 40,000 crore (Rs 400 billion).

The announcement comes at a time when a number of local private companies such as Tata Steel, Essar and Jindals are expanding capacity, while world's largest steelmaker Arcelor Mittal and Korean giant Posco are setting up new capacities.

Meanwhile, SAIL Chairman S K Roongta said the company's first priority right now would be to expand within the country and meet the growing domestic demand.

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