Growth of iron and steel industries in India

Growth of iron and steel industries in India

 

First Steps in Steel production in India: Sir Jamshedji Tata started the first integrated iron and steel plant in India. The plant is located in the Sakchi (now known as Jamshedpur) in Singbum district of Jharkhand state. His first step has become the best step ever in, steel production in India. Today, India is one of the leading producers of steel in the world.

Growth in Steel Industry: The Five Year Plans initiated by the government of India were responsible in setting up large integrated steel plants in the country. The first three. came up in Kulti, Hirpur and Burnpur. These three steel plants later merged together and the merged entity is now called Indian Iron and Steel Company. After this several new steel plants have been set up in India. Almost all these steel plants are managed under one large organization called Steel Authority of India. Important steel plants under public sector are located in:

1. Durgapur : West Bengal

2. Salem : Tamil Nadu

3. Bhadravati : Karnataka

4. Bhilai : Chattisgarh

5. Rourkela : Orissa

6. Bokaro : Jharkhand

7. Vishakhapattinam : Andhra Pradesh

 

Importance of Chotanagpur in Iron and Steel Industry: The Chotanagpur plateau is the home of Indian Iron and Steel Industry. The plateau is rich in minerals such as coal and iron ore. The region has several mines containing high-grade haematite iron ore. Thus, the raw materials required for the iron and steel industry are available in abundance in the plateau. Coal the most important mineral for production of iron and steel industries is being supplied from Jharia and Raniganj.

Electricity required by the iron and steel industries is being supplied continuously by Damodar Multipurpose River Valley project. The Chotanagpur plateau region is connected to the major cities and ports of India through roadways as well as railways. The region has an assured and cheap supply of skilled and semi-skilled labour from Bihar and Orissa. The region is a hinterland for the port of Kolkata through which international trade can easily be carried out. Thus, Chotanagpur is an ideal place for localisation of iron and steel industry. Other Important Detail Questions and Answers:

 

 

Factors that influence the localizations of industries in India

 

Manufacturing industries:

The word manufacturing literally means “to make by hand?. In a broader sense manufacturing means the process of conversion of raw materials into more useful and valuable articles with the help of artisans or machines. The basic principle of manufacturing is that the more a material changed its form the greater will be its value and utility. For instance, value and utility of mineral oil increases only if it is converted into petrol or diesel. The industries that are involved in the process of conversion of raw materials into finished products by means of machines are called manufacturing industries. The factors that influence the localization of industries in India are - 1. availability of raw material, 2. availability of electricity, 3. availability of labour, 4. means of transport, 5. nearness to the market and 6. government policies.

 

1. Availability of raw material:

The first and foremost requirement for a manufacturing industry is raw material. The nearness to source of the raw material is a major factor in the location of industries. For instance, iron ore is the main raw material for the manufacture of iron and steel. Establishing iron industries near iron mines helps to reduce the transportation of raw materials to the factory. A large quantity of coal is used in the process conversion of iron ore into finished product. Establishing iron industries near coal mines not only guarantees the availability of ore to the industries but also reduces the transportation of coal to the factory premises. Sugar industries are localised near the sugarcane cultivation areas to prevent sugarcane from loosing its weight before conversion into sugar.

 

2. Availability of electricity:

Industrial revolution that occurred in Europe converted all manufacturing processes into machine oriented. An uninterrupted supply of electricity has become a prime factor in the location of an industry. Heavy industries such as iron. and steel and also Heavy electrical industries are located near the source of power supply. For instance, heavy industries located in Chotanagpur region receive power supply form the Damodar River Valley Project.

 

3. Availability of labour:

Skilled and cheap labour is an important factor in the location of industry. For instance, jute industry is labour oriented. Such industries are located near the source of skilled labour. Bihar, Uttar Pradesh and Orissa have a dense population of cheap skilled labour.

 

4. Means of transport:

Transport is a major factor that influences significantly in the location of industries. Oil refineries use enormous quantity of crude oil generally imported from Middle East countries. Oil refineries convert crude oil into finished product such as petrol and diesel. These finished products should be distributed to various parts of the country. Import and distribution involve transportation. In order to facilitate efficiency in transportation oil refineries are localised near harbours or ports.

 

5. Nearness to the market:

The basic principle of manufacturing industries is value addition. The finished goods or value added goods should be distributed to the consumers. The place where producers meet consumers is called market. Localisation of industries near the market helps the producer to save on distribution cost. For instance, Automobile industries are localised near cities or towns. Thus market plays an impor ant role in localisation of industries.

 

6. Government policies:

Government policies such as regulations on banking, export benefits, regulations on land conversions, tax concessions given to industries play an important role in localisation of industries. For instance, export facilities and tax concessions extended to the software industries by some state governments have influenced the localisation of these industries in those states

 

7. Other important factors:

Factors such as availability of water (jute industry), favourable climate (cotton textile industry), banking (automobile and software industries) insurance (against fire, flood and strike) are also important in the location of industries.