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Indian steel manufacturer Tata Steel Ltd plans to expand its production capacity by 60% to 16 million tonnes from its existing 10 MT within the next five years, reported The Economic Times.

It is carrying out the final stages of development work on its Kalinganagar project which is valued at Rs 400 billion with a 6 million tonnes capacity.

Various factors like agitation among the workers, rise in capital costs and delay in acquisition of land affected the project.

The steel maker will complete the Phase I of the Kalinganagar project by the end of the 2015 fiscal, thereby adding 3 million tonnes of steel production to its existing capacity.

It will complete the development of the second phase of the project by 2018.

Tata Steel had been trying to complete the project since 2005 while its expenses surged way above the Rs 154 billion estimate.

• [Editor:Phillip.Feng]