I have a grating which is held down by two padlocks which go through a hole in the part that is cemented-in and the other side through the grating itself. Unfortunately the holes are about 3/8 inch diameter (poor design by the contractor) so this makes it hard to get the shackle properly lined up and the padlock closed. I want to expand the hole to around 3/4 inch. Oh, BTW the steel (mild) is about 3/8 inch thick.
What tool can I use? I don't have the luxury of removing it all to a machine shop and using a boring machine or an arbor press and a punch. I have to do it in place using hand tools but from prior experience I know that if I try to feed the 3/4 inch bit through the 3/8 inch hole it'll immediately seize and likely break the bit. A step drill will be far too small--only good for sheet metal really. Do they make some sort of tapered drill bit like the old-fashioned type for wood screws? Where would I look and what would I search for?