Page 1 Unit III Unit III Unit III Unit III Unit III Chapter 8 MANUFACTURING INDUSTRIES We use various items to satisfy our needs. Agricultural products like wheat, rice, etc. are to be processed into flour, husked rice before we consume these. But besides bread and rice, we also require clothes, books, fans, cars, medicines, etc. and these are manufactured in various industries. In modern times industries have become very important part of an economy. They provide employment to large labour force and contribute significantly in the total national wealth/income. T T T T Types of ypes of ypes of ypes of ypes of Industries Industries Industries Industries Industries Industries are classified in a number of ways. On the basis of size, capital investment and labour force employed, industries are classified as large, medium, small scale, and cottage industries. On the basis of ownership, industries are categorised as : (i) public sector, (ii) private sector, and (iii) joint and cooperative sector, Public sector enterprises are government/state controlled companies or corporations funded by governments. Industries of strategic and national importance are usually in the public sector. Industries are also classified on the basis of the use of their products such as : (i) basic goods industries, (ii) capital goods industries (iii) intermediate goods industries, and (iv) consumer goods industries. Another method of classifying industries is on the basis of raw materials used by them. Accordingly, these can be : (i) agriculture- based industries, (ii) forest-based industries, (iii) mineral-based industries, and (iv) industrially processed raw material- based industries. Another common classification of industries is based on the nature of the manufactured products. Eight classes of industries, thus identified are : (1) Metallurgical Industries, (2) Mechanical Engineering Industries, (3) Chemical and Allied Industries, (4) Textile Industries, (5) Food Processing Industries, (6) Electricity Generation, (7) Electronics and (8) Communication Industries. Sometimes, you also read about foot loose industries. What are these? Have they any relationship with raw material location or not? 2020-21 Page 2 Unit III Unit III Unit III Unit III Unit III Chapter 8 MANUFACTURING INDUSTRIES We use various items to satisfy our needs. Agricultural products like wheat, rice, etc. are to be processed into flour, husked rice before we consume these. But besides bread and rice, we also require clothes, books, fans, cars, medicines, etc. and these are manufactured in various industries. In modern times industries have become very important part of an economy. They provide employment to large labour force and contribute significantly in the total national wealth/income. T T T T Types of ypes of ypes of ypes of ypes of Industries Industries Industries Industries Industries Industries are classified in a number of ways. On the basis of size, capital investment and labour force employed, industries are classified as large, medium, small scale, and cottage industries. On the basis of ownership, industries are categorised as : (i) public sector, (ii) private sector, and (iii) joint and cooperative sector, Public sector enterprises are government/state controlled companies or corporations funded by governments. Industries of strategic and national importance are usually in the public sector. Industries are also classified on the basis of the use of their products such as : (i) basic goods industries, (ii) capital goods industries (iii) intermediate goods industries, and (iv) consumer goods industries. Another method of classifying industries is on the basis of raw materials used by them. Accordingly, these can be : (i) agriculture- based industries, (ii) forest-based industries, (iii) mineral-based industries, and (iv) industrially processed raw material- based industries. Another common classification of industries is based on the nature of the manufactured products. Eight classes of industries, thus identified are : (1) Metallurgical Industries, (2) Mechanical Engineering Industries, (3) Chemical and Allied Industries, (4) Textile Industries, (5) Food Processing Industries, (6) Electricity Generation, (7) Electronics and (8) Communication Industries. Sometimes, you also read about foot loose industries. What are these? Have they any relationship with raw material location or not? 2020-21 86 India : People and Economy Market Markets provide the outlets for manufactured products. Heavy machine, machine tools, heavy chemicals are located near the high demand areas as these are market orientated. Cotton textile industry uses a non-weight-losing raw material and is generally located in large urban centre, e.g. Mumbai, Ahmedabad, Surat, etc. Petroleum refineries are also located near the markets as the transport of crude oil is easier and several products derived from them are used as raw material in other industries. Koyali, Mathura and Barauni refineries are typical examples. Ports also play a crucial role in the location of oil refineries. Transport Have you ever tried to find out the reasons for the concentration of industries in Mumbai, Chennai, Delhi and in and around Kolkata? It was due to the fact that they initially became the nodal point having transport links. The industries shifted to interior locations, only when railway lines were laid. All major industrial plants are located on the trunk rail routes. Labour Can we think of an industry without labour? Industries require skilled labour. In India, labour is quite mobile and is available in large numbers due to our large population. Historical Factors Have you ever thought of the reasons for emerging Mumbai, Kolkata and Chennai as industrial nodes? These locations were greatly influenced by our colonial past. During the initial phase of colonisation, manufacturing activities received new impetus provided by the European traders. Places like Murshidabad, Dhaka, Bhadohi, Surat, Vadodara, Kozhikode, Coimbatore, Mysuru etc., emerged as important manufacturing centres. In the subsequent industrial phase of colonialism, these manufacturing centres experienced rapid growth due to competition from the goods manufactured in Britain and the discriminatory policies of colonial power. Location of Industries Can you guess the reasons for the location of iron and steel industry in eastern and southern India? Why is there no iron and steel industry in U.P., Haryana, Punjab, Rajasthan and Gujarat? Location of industries is influenced by several factors like access to raw materials, power, market, capital, transport and labour, etc. Relative significance of these factors varies with time and place. There is strong relationship between raw material and type of industry. It is economical to locate the manufacturing industries at a place where cost of production and delivery cost of manufactured goods to consumers are the least. Transport costs, to a great extent, depend on the nature of raw materials and manufactured products. A brief description of factors influencing the location of industries are given below: Raw Materials Industries using weight-losing raw materials are located in the regions where raw materials are located. Why are the sugar mills in India located in sugarcane growing areas? Similarly, the locations of pulp industry, copper smelting and pig iron industries are located near their raw materials. In iron and steel industries, iron ore and coal both are weight-losing raw materials. Therefore, an optimum location for iron and steel industries should be near raw material sources. This is why most of the iron and steel industries are located either near coalfields (Bokaro, Durgapur, etc.) or near sources of iron ore (Bhadravati, Bhilai, and Rourkela). Similarly, industries based on perishable raw materials are also located close to raw material sources. Power Power provides the motive force for machines, and therefore, its supply has to be ensured before the location of any industry. However, certain industries, like aluminium and synthetic nitrogen manufacturing industries tend to be located near sources of power because they are power intensive and require huge quantum of electricity. 2020-21 Page 3 Unit III Unit III Unit III Unit III Unit III Chapter 8 MANUFACTURING INDUSTRIES We use various items to satisfy our needs. Agricultural products like wheat, rice, etc. are to be processed into flour, husked rice before we consume these. But besides bread and rice, we also require clothes, books, fans, cars, medicines, etc. and these are manufactured in various industries. In modern times industries have become very important part of an economy. They provide employment to large labour force and contribute significantly in the total national wealth/income. T T T T Types of ypes of ypes of ypes of ypes of Industries Industries Industries Industries Industries Industries are classified in a number of ways. On the basis of size, capital investment and labour force employed, industries are classified as large, medium, small scale, and cottage industries. On the basis of ownership, industries are categorised as : (i) public sector, (ii) private sector, and (iii) joint and cooperative sector, Public sector enterprises are government/state controlled companies or corporations funded by governments. Industries of strategic and national importance are usually in the public sector. Industries are also classified on the basis of the use of their products such as : (i) basic goods industries, (ii) capital goods industries (iii) intermediate goods industries, and (iv) consumer goods industries. Another method of classifying industries is on the basis of raw materials used by them. Accordingly, these can be : (i) agriculture- based industries, (ii) forest-based industries, (iii) mineral-based industries, and (iv) industrially processed raw material- based industries. Another common classification of industries is based on the nature of the manufactured products. Eight classes of industries, thus identified are : (1) Metallurgical Industries, (2) Mechanical Engineering Industries, (3) Chemical and Allied Industries, (4) Textile Industries, (5) Food Processing Industries, (6) Electricity Generation, (7) Electronics and (8) Communication Industries. Sometimes, you also read about foot loose industries. What are these? Have they any relationship with raw material location or not? 2020-21 86 India : People and Economy Market Markets provide the outlets for manufactured products. Heavy machine, machine tools, heavy chemicals are located near the high demand areas as these are market orientated. Cotton textile industry uses a non-weight-losing raw material and is generally located in large urban centre, e.g. Mumbai, Ahmedabad, Surat, etc. Petroleum refineries are also located near the markets as the transport of crude oil is easier and several products derived from them are used as raw material in other industries. Koyali, Mathura and Barauni refineries are typical examples. Ports also play a crucial role in the location of oil refineries. Transport Have you ever tried to find out the reasons for the concentration of industries in Mumbai, Chennai, Delhi and in and around Kolkata? It was due to the fact that they initially became the nodal point having transport links. The industries shifted to interior locations, only when railway lines were laid. All major industrial plants are located on the trunk rail routes. Labour Can we think of an industry without labour? Industries require skilled labour. In India, labour is quite mobile and is available in large numbers due to our large population. Historical Factors Have you ever thought of the reasons for emerging Mumbai, Kolkata and Chennai as industrial nodes? These locations were greatly influenced by our colonial past. During the initial phase of colonisation, manufacturing activities received new impetus provided by the European traders. Places like Murshidabad, Dhaka, Bhadohi, Surat, Vadodara, Kozhikode, Coimbatore, Mysuru etc., emerged as important manufacturing centres. In the subsequent industrial phase of colonialism, these manufacturing centres experienced rapid growth due to competition from the goods manufactured in Britain and the discriminatory policies of colonial power. Location of Industries Can you guess the reasons for the location of iron and steel industry in eastern and southern India? Why is there no iron and steel industry in U.P., Haryana, Punjab, Rajasthan and Gujarat? Location of industries is influenced by several factors like access to raw materials, power, market, capital, transport and labour, etc. Relative significance of these factors varies with time and place. There is strong relationship between raw material and type of industry. It is economical to locate the manufacturing industries at a place where cost of production and delivery cost of manufactured goods to consumers are the least. Transport costs, to a great extent, depend on the nature of raw materials and manufactured products. A brief description of factors influencing the location of industries are given below: Raw Materials Industries using weight-losing raw materials are located in the regions where raw materials are located. Why are the sugar mills in India located in sugarcane growing areas? Similarly, the locations of pulp industry, copper smelting and pig iron industries are located near their raw materials. In iron and steel industries, iron ore and coal both are weight-losing raw materials. Therefore, an optimum location for iron and steel industries should be near raw material sources. This is why most of the iron and steel industries are located either near coalfields (Bokaro, Durgapur, etc.) or near sources of iron ore (Bhadravati, Bhilai, and Rourkela). Similarly, industries based on perishable raw materials are also located close to raw material sources. Power Power provides the motive force for machines, and therefore, its supply has to be ensured before the location of any industry. However, certain industries, like aluminium and synthetic nitrogen manufacturing industries tend to be located near sources of power because they are power intensive and require huge quantum of electricity. 2020-21 Manufacturing Industries 87 In the last phase of colonialism, the British promoted few industries in selected areas. This led to larger spatial coverage by different types of industries in the country. Industrial Policy India, being a democratic country aims at bringing about economic growth with balanced regional development. Establishment of iron and steel industry in Bhilai and Rourkela were based on decision to develop backward tribal areas of the country. At present, government of India provides lots of incentives to industries locating in backward areas. Major Industries The iron and steel industry is basic to the industrial development of any country. The cotton textile Industry is one of our traditional industries. The sugar Industry is based on local raw materials which prospered even in the British period. Besides the more recent petrochemical Industry and the IT industry will be discussed in this chapter. The Iron and Steel Industry The development of the iron and steel industry opened the doors to rapid industrial development in India. Almost all sectors of the Indian industry depend heavily on the iron and steel industry for their basic infrastructure. Can we make tools to be used in agriculture without iron? The other raw materials besides iron ore and coking coal, essential for iron and steel industry are limestone, dolomite, manganese and fire clay. All these raw materials are gross (weight losing), therefore, the best location for the iron and steel plants is near the source of raw materials. In India, there is a crescent shaped region comprising parts of Chhattisgarh, Northern Odisha, Jharkhand and western West Bengal, which is extremely rich in high grade iron ore, good quality coking coal and other supplementing raw materials. The Indian iron and steel industry consists of large integrated steel plants as well as mini steel mills. It also includes secondary producers, rolling mills and ancillary industries. Integrated Steel Plants TISCO The Tata Iron and Steel plant lies very close to the Mumbai-Kolkata railway line and about 240 km away from Kolkata, which is the nearest port for the export of steel. The rivers Subarnarekha and Kharkai provide water to the plant. The iron ore for the plant is obtained from Noamundi and Badam Pahar and coal is brought from Joda mines in Odisha. Coking coal comes from Jharia and west Bokaro coalfields. IISCO The Indian Iron and Steel Company (IISCO) set up its first factory at Hirapur and later on another at Kulti. In 1937, the Steel corporation of Bengal was constituted in association with IISCO and set up another iron and steel producing unit at Burnpur (West Bengal). All the three plants under IISCO are located very close to Damodar valley coal fields (Raniganj, Jharia, and Ramgarh). Iron ore comes from Singhbhum in Jharkhand. Water is obtained from the Barakar River, a tributary of the Damodar. All the plants are located along the Kolkata-Asansol railway line. Unfortunately, steel production from IISCO fell considerably in 1972-73 and the plants were taken over by the government. Visvesvaraiya Iron and Steel Works Ltd. (VISL) The third integrated steel plant, the Visvesvaraiya Iron and Steel Works, initially called the Mysore Iron and Steel Works, is located close to an iron ore producing area of Kemangundi in the Bababudan hills. Limestone and manganese are also locally available. But this region has no coal. At the beginning, charcoal obtained by burning wood from nearby forests was used as fuel till 1951. Afterwards, electric furnaces were installed which use hydroelectricity from the Jog Falls hydel power project. The Bhadravati river supplies water to the plant. This plant produces specialised steels and alloys. 2020-21 Page 4 Unit III Unit III Unit III Unit III Unit III Chapter 8 MANUFACTURING INDUSTRIES We use various items to satisfy our needs. Agricultural products like wheat, rice, etc. are to be processed into flour, husked rice before we consume these. But besides bread and rice, we also require clothes, books, fans, cars, medicines, etc. and these are manufactured in various industries. In modern times industries have become very important part of an economy. They provide employment to large labour force and contribute significantly in the total national wealth/income. T T T T Types of ypes of ypes of ypes of ypes of Industries Industries Industries Industries Industries Industries are classified in a number of ways. On the basis of size, capital investment and labour force employed, industries are classified as large, medium, small scale, and cottage industries. On the basis of ownership, industries are categorised as : (i) public sector, (ii) private sector, and (iii) joint and cooperative sector, Public sector enterprises are government/state controlled companies or corporations funded by governments. Industries of strategic and national importance are usually in the public sector. Industries are also classified on the basis of the use of their products such as : (i) basic goods industries, (ii) capital goods industries (iii) intermediate goods industries, and (iv) consumer goods industries. Another method of classifying industries is on the basis of raw materials used by them. Accordingly, these can be : (i) agriculture- based industries, (ii) forest-based industries, (iii) mineral-based industries, and (iv) industrially processed raw material- based industries. Another common classification of industries is based on the nature of the manufactured products. Eight classes of industries, thus identified are : (1) Metallurgical Industries, (2) Mechanical Engineering Industries, (3) Chemical and Allied Industries, (4) Textile Industries, (5) Food Processing Industries, (6) Electricity Generation, (7) Electronics and (8) Communication Industries. Sometimes, you also read about foot loose industries. What are these? Have they any relationship with raw material location or not? 2020-21 86 India : People and Economy Market Markets provide the outlets for manufactured products. Heavy machine, machine tools, heavy chemicals are located near the high demand areas as these are market orientated. Cotton textile industry uses a non-weight-losing raw material and is generally located in large urban centre, e.g. Mumbai, Ahmedabad, Surat, etc. Petroleum refineries are also located near the markets as the transport of crude oil is easier and several products derived from them are used as raw material in other industries. Koyali, Mathura and Barauni refineries are typical examples. Ports also play a crucial role in the location of oil refineries. Transport Have you ever tried to find out the reasons for the concentration of industries in Mumbai, Chennai, Delhi and in and around Kolkata? It was due to the fact that they initially became the nodal point having transport links. The industries shifted to interior locations, only when railway lines were laid. All major industrial plants are located on the trunk rail routes. Labour Can we think of an industry without labour? Industries require skilled labour. In India, labour is quite mobile and is available in large numbers due to our large population. Historical Factors Have you ever thought of the reasons for emerging Mumbai, Kolkata and Chennai as industrial nodes? These locations were greatly influenced by our colonial past. During the initial phase of colonisation, manufacturing activities received new impetus provided by the European traders. Places like Murshidabad, Dhaka, Bhadohi, Surat, Vadodara, Kozhikode, Coimbatore, Mysuru etc., emerged as important manufacturing centres. In the subsequent industrial phase of colonialism, these manufacturing centres experienced rapid growth due to competition from the goods manufactured in Britain and the discriminatory policies of colonial power. Location of Industries Can you guess the reasons for the location of iron and steel industry in eastern and southern India? Why is there no iron and steel industry in U.P., Haryana, Punjab, Rajasthan and Gujarat? Location of industries is influenced by several factors like access to raw materials, power, market, capital, transport and labour, etc. Relative significance of these factors varies with time and place. There is strong relationship between raw material and type of industry. It is economical to locate the manufacturing industries at a place where cost of production and delivery cost of manufactured goods to consumers are the least. Transport costs, to a great extent, depend on the nature of raw materials and manufactured products. A brief description of factors influencing the location of industries are given below: Raw Materials Industries using weight-losing raw materials are located in the regions where raw materials are located. Why are the sugar mills in India located in sugarcane growing areas? Similarly, the locations of pulp industry, copper smelting and pig iron industries are located near their raw materials. In iron and steel industries, iron ore and coal both are weight-losing raw materials. Therefore, an optimum location for iron and steel industries should be near raw material sources. This is why most of the iron and steel industries are located either near coalfields (Bokaro, Durgapur, etc.) or near sources of iron ore (Bhadravati, Bhilai, and Rourkela). Similarly, industries based on perishable raw materials are also located close to raw material sources. Power Power provides the motive force for machines, and therefore, its supply has to be ensured before the location of any industry. However, certain industries, like aluminium and synthetic nitrogen manufacturing industries tend to be located near sources of power because they are power intensive and require huge quantum of electricity. 2020-21 Manufacturing Industries 87 In the last phase of colonialism, the British promoted few industries in selected areas. This led to larger spatial coverage by different types of industries in the country. Industrial Policy India, being a democratic country aims at bringing about economic growth with balanced regional development. Establishment of iron and steel industry in Bhilai and Rourkela were based on decision to develop backward tribal areas of the country. At present, government of India provides lots of incentives to industries locating in backward areas. Major Industries The iron and steel industry is basic to the industrial development of any country. The cotton textile Industry is one of our traditional industries. The sugar Industry is based on local raw materials which prospered even in the British period. Besides the more recent petrochemical Industry and the IT industry will be discussed in this chapter. The Iron and Steel Industry The development of the iron and steel industry opened the doors to rapid industrial development in India. Almost all sectors of the Indian industry depend heavily on the iron and steel industry for their basic infrastructure. Can we make tools to be used in agriculture without iron? The other raw materials besides iron ore and coking coal, essential for iron and steel industry are limestone, dolomite, manganese and fire clay. All these raw materials are gross (weight losing), therefore, the best location for the iron and steel plants is near the source of raw materials. In India, there is a crescent shaped region comprising parts of Chhattisgarh, Northern Odisha, Jharkhand and western West Bengal, which is extremely rich in high grade iron ore, good quality coking coal and other supplementing raw materials. The Indian iron and steel industry consists of large integrated steel plants as well as mini steel mills. It also includes secondary producers, rolling mills and ancillary industries. Integrated Steel Plants TISCO The Tata Iron and Steel plant lies very close to the Mumbai-Kolkata railway line and about 240 km away from Kolkata, which is the nearest port for the export of steel. The rivers Subarnarekha and Kharkai provide water to the plant. The iron ore for the plant is obtained from Noamundi and Badam Pahar and coal is brought from Joda mines in Odisha. Coking coal comes from Jharia and west Bokaro coalfields. IISCO The Indian Iron and Steel Company (IISCO) set up its first factory at Hirapur and later on another at Kulti. In 1937, the Steel corporation of Bengal was constituted in association with IISCO and set up another iron and steel producing unit at Burnpur (West Bengal). All the three plants under IISCO are located very close to Damodar valley coal fields (Raniganj, Jharia, and Ramgarh). Iron ore comes from Singhbhum in Jharkhand. Water is obtained from the Barakar River, a tributary of the Damodar. All the plants are located along the Kolkata-Asansol railway line. Unfortunately, steel production from IISCO fell considerably in 1972-73 and the plants were taken over by the government. Visvesvaraiya Iron and Steel Works Ltd. (VISL) The third integrated steel plant, the Visvesvaraiya Iron and Steel Works, initially called the Mysore Iron and Steel Works, is located close to an iron ore producing area of Kemangundi in the Bababudan hills. Limestone and manganese are also locally available. But this region has no coal. At the beginning, charcoal obtained by burning wood from nearby forests was used as fuel till 1951. Afterwards, electric furnaces were installed which use hydroelectricity from the Jog Falls hydel power project. The Bhadravati river supplies water to the plant. This plant produces specialised steels and alloys. 2020-21 88 India : People and Economy Fig. 8.1 : India – Iron and Steel Plants 2020-21 Page 5 Unit III Unit III Unit III Unit III Unit III Chapter 8 MANUFACTURING INDUSTRIES We use various items to satisfy our needs. Agricultural products like wheat, rice, etc. are to be processed into flour, husked rice before we consume these. But besides bread and rice, we also require clothes, books, fans, cars, medicines, etc. and these are manufactured in various industries. In modern times industries have become very important part of an economy. They provide employment to large labour force and contribute significantly in the total national wealth/income. T T T T Types of ypes of ypes of ypes of ypes of Industries Industries Industries Industries Industries Industries are classified in a number of ways. On the basis of size, capital investment and labour force employed, industries are classified as large, medium, small scale, and cottage industries. On the basis of ownership, industries are categorised as : (i) public sector, (ii) private sector, and (iii) joint and cooperative sector, Public sector enterprises are government/state controlled companies or corporations funded by governments. Industries of strategic and national importance are usually in the public sector. Industries are also classified on the basis of the use of their products such as : (i) basic goods industries, (ii) capital goods industries (iii) intermediate goods industries, and (iv) consumer goods industries. Another method of classifying industries is on the basis of raw materials used by them. Accordingly, these can be : (i) agriculture- based industries, (ii) forest-based industries, (iii) mineral-based industries, and (iv) industrially processed raw material- based industries. Another common classification of industries is based on the nature of the manufactured products. Eight classes of industries, thus identified are : (1) Metallurgical Industries, (2) Mechanical Engineering Industries, (3) Chemical and Allied Industries, (4) Textile Industries, (5) Food Processing Industries, (6) Electricity Generation, (7) Electronics and (8) Communication Industries. Sometimes, you also read about foot loose industries. What are these? Have they any relationship with raw material location or not? 2020-21 86 India : People and Economy Market Markets provide the outlets for manufactured products. Heavy machine, machine tools, heavy chemicals are located near the high demand areas as these are market orientated. Cotton textile industry uses a non-weight-losing raw material and is generally located in large urban centre, e.g. Mumbai, Ahmedabad, Surat, etc. Petroleum refineries are also located near the markets as the transport of crude oil is easier and several products derived from them are used as raw material in other industries. Koyali, Mathura and Barauni refineries are typical examples. Ports also play a crucial role in the location of oil refineries. Transport Have you ever tried to find out the reasons for the concentration of industries in Mumbai, Chennai, Delhi and in and around Kolkata? It was due to the fact that they initially became the nodal point having transport links. The industries shifted to interior locations, only when railway lines were laid. All major industrial plants are located on the trunk rail routes. Labour Can we think of an industry without labour? Industries require skilled labour. In India, labour is quite mobile and is available in large numbers due to our large population. Historical Factors Have you ever thought of the reasons for emerging Mumbai, Kolkata and Chennai as industrial nodes? These locations were greatly influenced by our colonial past. During the initial phase of colonisation, manufacturing activities received new impetus provided by the European traders. Places like Murshidabad, Dhaka, Bhadohi, Surat, Vadodara, Kozhikode, Coimbatore, Mysuru etc., emerged as important manufacturing centres. In the subsequent industrial phase of colonialism, these manufacturing centres experienced rapid growth due to competition from the goods manufactured in Britain and the discriminatory policies of colonial power. Location of Industries Can you guess the reasons for the location of iron and steel industry in eastern and southern India? Why is there no iron and steel industry in U.P., Haryana, Punjab, Rajasthan and Gujarat? Location of industries is influenced by several factors like access to raw materials, power, market, capital, transport and labour, etc. Relative significance of these factors varies with time and place. There is strong relationship between raw material and type of industry. It is economical to locate the manufacturing industries at a place where cost of production and delivery cost of manufactured goods to consumers are the least. Transport costs, to a great extent, depend on the nature of raw materials and manufactured products. A brief description of factors influencing the location of industries are given below: Raw Materials Industries using weight-losing raw materials are located in the regions where raw materials are located. Why are the sugar mills in India located in sugarcane growing areas? Similarly, the locations of pulp industry, copper smelting and pig iron industries are located near their raw materials. In iron and steel industries, iron ore and coal both are weight-losing raw materials. Therefore, an optimum location for iron and steel industries should be near raw material sources. This is why most of the iron and steel industries are located either near coalfields (Bokaro, Durgapur, etc.) or near sources of iron ore (Bhadravati, Bhilai, and Rourkela). Similarly, industries based on perishable raw materials are also located close to raw material sources. Power Power provides the motive force for machines, and therefore, its supply has to be ensured before the location of any industry. However, certain industries, like aluminium and synthetic nitrogen manufacturing industries tend to be located near sources of power because they are power intensive and require huge quantum of electricity. 2020-21 Manufacturing Industries 87 In the last phase of colonialism, the British promoted few industries in selected areas. This led to larger spatial coverage by different types of industries in the country. Industrial Policy India, being a democratic country aims at bringing about economic growth with balanced regional development. Establishment of iron and steel industry in Bhilai and Rourkela were based on decision to develop backward tribal areas of the country. At present, government of India provides lots of incentives to industries locating in backward areas. Major Industries The iron and steel industry is basic to the industrial development of any country. The cotton textile Industry is one of our traditional industries. The sugar Industry is based on local raw materials which prospered even in the British period. Besides the more recent petrochemical Industry and the IT industry will be discussed in this chapter. The Iron and Steel Industry The development of the iron and steel industry opened the doors to rapid industrial development in India. Almost all sectors of the Indian industry depend heavily on the iron and steel industry for their basic infrastructure. Can we make tools to be used in agriculture without iron? The other raw materials besides iron ore and coking coal, essential for iron and steel industry are limestone, dolomite, manganese and fire clay. All these raw materials are gross (weight losing), therefore, the best location for the iron and steel plants is near the source of raw materials. In India, there is a crescent shaped region comprising parts of Chhattisgarh, Northern Odisha, Jharkhand and western West Bengal, which is extremely rich in high grade iron ore, good quality coking coal and other supplementing raw materials. The Indian iron and steel industry consists of large integrated steel plants as well as mini steel mills. It also includes secondary producers, rolling mills and ancillary industries. Integrated Steel Plants TISCO The Tata Iron and Steel plant lies very close to the Mumbai-Kolkata railway line and about 240 km away from Kolkata, which is the nearest port for the export of steel. The rivers Subarnarekha and Kharkai provide water to the plant. The iron ore for the plant is obtained from Noamundi and Badam Pahar and coal is brought from Joda mines in Odisha. Coking coal comes from Jharia and west Bokaro coalfields. IISCO The Indian Iron and Steel Company (IISCO) set up its first factory at Hirapur and later on another at Kulti. In 1937, the Steel corporation of Bengal was constituted in association with IISCO and set up another iron and steel producing unit at Burnpur (West Bengal). All the three plants under IISCO are located very close to Damodar valley coal fields (Raniganj, Jharia, and Ramgarh). Iron ore comes from Singhbhum in Jharkhand. Water is obtained from the Barakar River, a tributary of the Damodar. All the plants are located along the Kolkata-Asansol railway line. Unfortunately, steel production from IISCO fell considerably in 1972-73 and the plants were taken over by the government. Visvesvaraiya Iron and Steel Works Ltd. (VISL) The third integrated steel plant, the Visvesvaraiya Iron and Steel Works, initially called the Mysore Iron and Steel Works, is located close to an iron ore producing area of Kemangundi in the Bababudan hills. Limestone and manganese are also locally available. But this region has no coal. At the beginning, charcoal obtained by burning wood from nearby forests was used as fuel till 1951. Afterwards, electric furnaces were installed which use hydroelectricity from the Jog Falls hydel power project. The Bhadravati river supplies water to the plant. This plant produces specialised steels and alloys. 2020-21 88 India : People and Economy Fig. 8.1 : India – Iron and Steel Plants 2020-21 Manufacturing Industries 89 Fig. 8.2 Fig. 8.3 Fig. 8.4 Fig. 8.5 Fig. 8.6 Fig. 8.7 Fig. 8.8 2020-21Read More
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