Initially SMS-I was set up to produce 1 MT steel annually, from 6 Open-Hearth furnaces of 250 T capacity each. First tapping was done on 12th October 1959. Sixth Open-hearth furnace was commissioned on 22nd February 1961. Later on it was decided by the corporate management to increase the capacity of the shop to 2.5 MT, by installing 4 more open hearth furnaces of 500 T capacity and converting OH no. 6 from 250 T to 500 T capacity, which was completed on 14th April 1967.

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