Tata Steel would raise production capacity at its Jamshedpur plant to 10 million tonnes per annum from the current 6.8 million tonnes, the company's managing director B Muthuraman said.
Tata Steel also plans to set up a second steel plant at Jharkhand, he said at the opening of blast furnace 'H' today.
He said the capacity hike at the existing plant of the company would be effected by the middle of 2010.
Construction work at the company's proposed plant at Orissa would begin soon, while the other at Chattisgarh was showing signs of good progress, he said.
Muthuraman said issues land acquisition, rehabilitation of the land losers, putting in place a better minerals policy and stopping "mindless" exports of iron ore should better be addressed by the government.
These are the issues restraining capacity addition by the steel makers and causing an increase in imports of steel into the country, he said.
For the next few years, steel imports into India would touch 25 million tonnes per annum, Muthuraman said, adding, ''Production would have to rise as consumption was outstripping demand".