New Delhi, Aug. 27 -- Lloyds Metals & Energy Ltd is considering raising the capacity of its proposed steel plant in Maharashtra to as much as 8 million tonnes a year, as surging iron ore production bolsters its downstream ambitions.

The company has received environmental clearance for a 4.5 million tonne a year (mtpa) steel plant at Konsari in Gadchiroli, up from the 3 mtpa facility originally planned, and is evaluating whether to take the capacity as high as 8 mtpa, according to two people familiar with the matter. Board approval is pending, they said.

To be sure, a decision on the final capacity will determine the project's investment requirement and whether any additional environmental approvals are needed.

The potential scale-up co...