Riding high on the buoyancy in the market, state-owned Steel Authority of India Ltd has planned to invest Rs 800-Rs 1,000 crore (Rs 8-10 billion) annually to keep pace with the technological upgradation and maintain quality and competitiveness.

"With 92 per cent of our products being sold in domestic market, SAIL is essentially a major domestic player and we will make the investments keeping in view market requirement in the country," SAIL Chairman V S Jain said.

At present, SAIL's product mix included 60 per cent flats and 40 per cent longs.

Predicting a growth both in long and flat segments, Jain said the company's strategy would be worked out keeping in mind the market scenario.

He said for the current fiscal Rs 600 crore (Rs 6 billion) had already been approved for various upgradation plans which included installation of facilities for manufacturing longer rails in Bhilai involving an expenditure of over Rs 300 crore.

On the company's financial performance, Jain said after being in the red for some years, SAIL achieved a turnaround with a half-yearly net profit of Rs 760 crore (Rs 7.60 billion) in the current fiscal.

He said about Rs 2,000 crore (Rs 20 billion) debt reduction was achieved by SAIL in the first six months of 2003-04.

The interest payment was also reduced by Rs 200 crore (Rs 2 billion) by repaying and replacing high-interest borrowings with low-interest loans.