Locational factors of Cotton, Jute, Textile, Iron & Steel, Aluminum- 2 | Geography Optional for UPSC (Notes) PDF Download

Jute Textile Industry

The Jute Textile Industry is a significant sector in Eastern India, particularly in West Bengal, and is considered the second most important textile industry after cotton. India is one of the largest producers of jute products, and the production process in this industry involves various activities, including the cultivation of raw jute, processing jute fibers, spinning, weaving, bleaching, dyeing, finishing, and marketing both raw jute and its finished products. As a result, the Jute Textile Industry supports approximately 4 million farming families and directly employs 260,000 industrial workers and 140,000 tertiary sector workers. Furthermore, this industry contributes to valuable foreign exchange earnings through exports.

Growth and Development

• The jute manufacturing industry initially existed as a handloom industry, but it transitioned into a large-scale operation in 1855, beginning in Rishra near Calcutta. Power looms were introduced, allowing for both spinning and weaving processes to be carried out. The industry was primarily export-oriented and experienced rapid growth.
• However, the partition of India in 1947 created a significant challenge for the jute industry, as the majority of jute-producing areas (80%) became part of East Pakistan. This led to a disruption in the import of raw materials from East Pakistan due to political differences between the two countries. To address this issue, efforts were made to increase jute cultivation within India, eventually stabilizing the industry.
• The jute industry's success is heavily reliant on its export performance, as its growth and decline are closely tied to the international and national demand for its products. In the 2011-12 crop year (July - June), India produced 102 lakh bales of jute, with one bale of jute equivalent to 332.5 kg.

Growth and Distribution

• Efforts to increase the jute cultivation area have helped improve the situation, but it still faces fluctuations due to various factors. One of the major factors is the dependence on monsoons, which are erratic in nature and can significantly affect jute production.
• Another factor is the reliance on government policies, as the jute industry depends heavily on the government sector, which purchases jute products worth more than 5,500 crore rupees annually. Any changes in these policies can have a significant impact on the industry.
• The delay in announcing support prices also affects the industry. The jute industry earns a business of around 10,000 crore rupees by selling its produce to the Food Corporation of India (FCI), sugar mills, co-operatives, and the Indian market, as well as through exports. The FCI is responsible for purchasing nearly 35-40% of the jute mills' produce. However, delays in announcing the minimum support prices (MSP) have led to cash crunches in the industry. MSP is the rate at which the government buys grains from farmers and is intended to counter price volatility in agricultural commodities.
• Jute textile production has also experienced fluctuations due to labor unrest. The industry often suffers from political interference and labor issues, which challenge the sustainability of the jute industry.
• Fluctuating demand is another factor, as the jute industry faces stiff competition from the synthetic industry for similar packaging materials. Synthetic materials are often cheaper, making them more attractive to consumers.
• Lastly, the non-availability of raw materials has also impacted the industry. After the partition, most of the jute-producing areas became part of Bangladesh (formerly East Pakistan), resulting in a shortage of raw jute. Although efforts have been made to increase the supply of raw jute since India's independence, it still falls short of current requirements.

Location factors

• Jute industry depends on:
  • Availability of quality jute: The Ganga-Brahmaputra delta grows about 90 percent of India’s jute and provides raw material to jute mills.
  • Transportation: Cheap water transportation is available in the Ganga-Brahmaputra delta region. The area is also served by a network of roads and railways.
  • Labour: High density of population is required for abundant cheap labour.
  • Water: Abundant water is required for processing, washing, and dyeing jute.
  • Market: Big capitalists are living in and around Kolkata and the High density of population in West Bengal makes the easy flow of capital in this industry and provides a robust market.
  • Power: Coal is obtained from Raniganj fields which are hardly 200 km away from Ganga-Brahmputra region.
• In India, the jute industry is highly localization and concentrated in specific regions.

Location Factor of Jute Industry (mainly around West Bengal)

1. Water
   • Flowing water in abundant quantity is required, which is provided by Hoogly River.
   • Water is also required for Retting, Washing, dyeing etc.
2.  Transportation
   • Hooghly River provides cheap transportation for the industry.
   • A dense network of road and railways has also helped in flourishing jute industry in Eastern region.
3. Raw material
   1. Ganga Brahmaputra delta grows about 90% of India’s jute production
   2. India now tops the production of raw jute.
   3. Shortage of raw jute due to political differences with Bangladesh led to a relentless campaign to increase production of raw jute by increasing area in Brahmaputra Valley, West Bengal, Tarai and E. Coastal Plains and all regions around Calcutta.
   4. New hybrid varieties like JRO – 632, JRO – 753 are being grown, with better outputs.
4. Climate
   • Humid climate suited to jute cultivation
   • Humid climate is very convenient for spinning and weaving of raw jute.
5. Labour
   • It is a labour intensive industry: large man power is required for jute cultivation, processing, dyeing etc.
   • High density of population in west Bengal, Bihar and Eastern U.P provide cheap labour for industry.
   • 4 million farmers, mostly small and marginal and 2 lakh workers are engaged in jute cultivation and production.
6. Coal
   • Raniganj field within 200 KM distance provide coal to the industry.
   • DVC also avails ready power to the industry.
7.  Port
   • Calcutta port serves this region for import of machinery and other material and export of finished material abroad.
   • The riverine nature of the port has facilitated easy mobility of various products.
8. Market
   • Rich hinterland of Calcutta and industrial development around it provide a ready market for the jute industry.
   • Development of the sugar industry in neighboring U.P and Bihar also boosted demand for gunny bags. Export other countries through Calcutta port in the vicinity also provided a good market. India is second in the export of jute goods and tops the list in production.
   • Govt. Issues an order under jute packaging materials, 1987 under which a mandatory percentage of packaging of sugar (50%) and food grains (60%) in jute bags also helped the industry.
9. Capital and banking
   • Big capitalists in and around Calcutta ensure the easy flow of capital in this industry.
   • Agglomeration has also ensured banking and insurance facilities in this region.
10. Historical advantages
    • Last but not least, rarely start of the industry by East India Company in this region enjoys the growth in letter periods.
    • The needs of jute bags in industrializing Europe during 19th century gave an impetus to the jute industry. British enterprise and capital played a great role in initial development and expansion.
    • Due to these factors, the Jute industry is largely confined to West Bengal in general and Hugli in particular.
    • After independence, there has been some limited dispersion of the industry, are 4 other regions of Jute:
      (i) North East India: here the industry has emerged principally due to favourable environmental conditions.
      (ii) North–east plains of Bihar: here rainfall and soil conditions are favourable.
      (iii) Tarai regions of UP
      (iv) Eastern Coastal region
    • There has been some dispersion, due to increasing demand from the sugar industry in UP and cement industry MP. Also, with the increasing trend of mixing jute with other fibres, dispersion of jute industry has been to areas where there is the availability of such fibre e.g. Mesta grown in South India especially in Andhra Pradesh.
    • Apart from WB, there are jute mills at Guntur Vishakapatnam and in Andhra Pradesh, Kanpur, Gorakhpur in UP, Purnea, Katihar, Samastipur, Darbhanga, Gaya in Bihar, Raigarh in Chhattisgarh, and Cuttack in Orissa, Assam, and Tripura also have one mill each.

Distribution of Jute Industry

• West Bengal has the largest concentration of the jute industry accounting for more than 80% of production and mills.
• Dispersal of the industry has taken place westwards with Andhra accounting for another 10% and rest in UP and Bihar.
• Most of the jute mills are within a radius of 64 KM around Calcutta; confined in a narrow belt 3 KM wide and 100 KM long along Hugli River.
• In addition to West Bengal, jute mills are also located at Guntur, Vishakhapatnam and Nelimarla, Chellivelsa, Eburu and Ongole in Andhra Pradesh; Kanpur, Shahjanwan and Gorakhpur in Uttar Pradesh; Purnea, Katihar, Samastipur, Darbhanga and Gaya in Bihar; Raigarh in Chhattisgarh and Cuttack in Orissa. Assam and Tripura also have one jute mill each.

 Problems of Jute industry

• Overall demand of jute in international market is reducing.
• There is a tough competition from synthetic packing materials of advanced countries of Europe and N. America. Therefore market of jute goods is shrinking. These products are durable and cheaper.
• Within the jute goods market, Bangladesh mills are competing along with China with better quality goods.
• Bulk handling practices in US, Argentina, Canada, Japan and Europe have decreased demand of jute.
• Cost of Indian jute product is comparatively higher.
• Availability of local fibres like Mesta (especially in Andhra Pradesh) etc, have reduced jute demand.
• Jute industry is facing stiff competition synthetic packing material.
• This specific industry is also using the age-old machinery to produce jute yarns and fabrics (except 2-3 countable industry). Due to the use of very old primitive machinery, the efficiency of the machines is not up to the mark (in an average within 80 per cent). Due to frequent breakdowns, defective and inferior quality products are being made. No modernization has been made in machinery development and automation. New mills in Bangladesh are producing better quality goods which are diminishing the competitiveness of Indian mills.
• Infrastructural bottlenecks, power, transportation, and capital also pose several threats to the sustainability of Jute industry.
• Raw material: Even after substantial increase in area and yield in jute production, India falls short of requirement which lead to underutilization of installed capacity of jute industry.
• In West Bengal strong labour unions frequently lead to problem of strikes, lockout and other labour problems, this has further decreased the competitiveness.

Measures taken for the jute industry

• Diversification of jute products such as clothing items, decorative items, matting of carpet improve durability, packing items, etc. has been done to increase the horizon of Jute Industry.
• Improve quality: Innovative ways of bleaching, dyeing, and finished goods processes the jute industry now provides finished jute products that are softer and have to luster with aesthetic appeal. Today Jute has been defined as eco-friendly natural fiber with utmost versatility ranging from low-value geo-textiles to high-value carpets, decorative, apparel, composites, upholstery furnishings, etc.
• Reduce cost: Efforts in R&D to strengthen the jute industry and implement newer technologies, diversified products, and improved machinery through intensive modernization. These will fetch more profit by reducing cost and has less market competition (synthetic counterpart) due to its eco-friendly property which has good prospects in the coming days.
• Jute cultivation is being expanded. There has been some dispersion, due to increasing demand from the sugar industry in UP and cement industry MP.
• Jute is environment friendly and renewable; hence its use must be encouraged e.g. by making it mandatory to use jute for packaging.
• Govt has issued orders like cement, sugar, fertilizer, have to strictly make use of jute production to packing the materials, Food Corporation of India, oilseeds, and tea sector also have to implement this order.
• National jute Manufactures Corporation has been formed to boost the jute industry.

Future prospects of the Jute industry

The future prospects of the Jute industry, however, is bright due to the following:

• Diversification of jute products
• Environmental awareness
• Ban on polythene and plastic bags
• Increasing use for oil conservation
• Construction of bunds, river embankments, landslide protection
• Along with cotton, jute is also being used for apparel manufacturing.

Iron and Steel industry

Modern industrialization is synonymous with the development of the iron and steel industry. The extent of industrialization in any country is usually measured in terms of the per capita consumption of steel. This is because all other industries have to depend on steel out of which machinery of any kind is manufactured.
As soon as the process of machine production gets momentum, the rate of industrialization gets strengthened. Thus, in the dynamics of industrial growth in any country, the growth of the iron and steel industry is undoubtedly crucial.
India surpassed Japan as the second top steel producer in January 2019. India was the world’s second-largest steel producer with production standing at 111.2 million tonnes (MT) in 2019.
In FY21, the production of crude steel and finished steel stood a 102.49 MT and 94.66 MT, respectively.  According to CARE Ratings, crude steel production is expected to reach 112-114 MT (million tonnes), an increase of 8-9% YoY in FY22.  The consumption of finished steel stood at 93.43 MT in FY21.
Exports and imports of finished steel stood at 10.79 MT and 4.75 MT, respectively, in FY21. In April 2021, India’s export rose by 121.6% YoY, compared with 2020. In FY20, India exported 8.24 MT of finished steel.
The growth in the Indian steel sector has been driven by the domestic availability of raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a major contributor to India’s manufacturing output.
The Indian steel industry is modern with state-of-the-art steel mills. It has always strived for continuous modernization of older plants and up-gradation to higher energy efficiency levels.

Significance of Iron & Steel industry

• It is the index of modernity, the development of the steel industry has a direct link with the development of a country.
• Iron and steel industry act as a backbone for the physical infrastructure development of the country
• Iron and steel industry provides strong forward-backward linkage for the industrial infrastructure of a country.
• Iron and steel industry is important for the regional development of the place where these industries are located.
• Iron and steel industry plays a major role in the development of many other industries like the automobile industry.
• Iron and steel industry has generated huge employment especially in backward areas where these industries are located.
• Iron and steel industry gave boosts to the transportation sector like road, railway, airway, and waterways.
• Iron and steel industry is important for the growth of the research and development sector in India.

Growth and Development of the Iron and Steel industry

• Indians are known for the art of smelting iron in early times e.g. Mehrauli pillar. But first Iron and steel industry unit on modern lines was set up in 1830 at Porto-Nova (Tamil Nadu) but was not successful. Other attempts in the second half of the 19th century met the same fate.
• The real beginning of Iron and steel industry was in 1907 with setting up of TISCO plant at Jamshedpur. It was set up in the confluence of Subarnarekha and Kharkai rivers in 1907. Since then, Indian iron and steel industry made a great stride to reach its present stage.
• The Indian Iron and Steel Company (IISCO) were set up in 1919 at Burnpur followed by the setting up of Mysore Steel Works at Bhadravati (now Visveswaraya Iron and Steel Works) in 1923.

Rapid growth after independence

• The development of Iron and Steel industry was envisaged during first five year plan (FYP), but it was during second FYP that three integrated projects were started at Bhilai (with erstwhile USSR technical and financial support), Rourkela (with Germany assistance) and Durgapur (with U.K assistance)
• During third FYP, Bokaro steel plant was started (production started in 1972)
• Three more Steel plants planned during fourth FYP was started to meet the requirement of steel. These plants were:
  (i) Salem Iron and Steel Plant in Tamil Nadu
  (ii) Vizag Iron and Steel Plant in Andhra Pradesh
  (iii) Vijayanagar Iron and Steel Plant (Hospet district in Karnataka)
• Steel Authority of India (SAIL) Established in 1973, SAIL is a government undertaking and is responsible for the management of steel plants at Bhilai, Durgapur, Rourkela, Bokaro and Bumpur and also the Alloy Steel Plant at Durgapur and Salem Steel Plant.
• The management of Indian Iron and Steel was taken over by Government on 14th July, 1976. Visweswaraya Iron and Steel Limited were also taken over by SAIL in August 1989.
  
  Phases of growth of the Iron and Steel industry

Location factors of the iron and steel industry

• Iron and steel industry uses large quantities of heavy and weight losing raw materials and its localization is primarily controlled by the availability of raw materials. However, other factors do play role in the location of the Iron and steel industry which are discussed below:
• Raw material
  • Iron and Steel industry uses a large quantity of heavy and weight losing raw material, so its location is primarily guided by the availability of raw material.
  • Most of the iron and steel plants of India such as Jamshedpur, Burnpur, Durgapur, Rourkela, Bhilai, and Bokaro are located in Jharkhand, West Bengal, Orissa and Chhattisgarh. These states are very rich in coal and iron ore deposits and are important producers of these materials.
  • Visveswaraya Iron and Steel Works at Bhadravati is a major exception which is located far away from the main coal-producing areas of the country. Earlier, this centre was depending upon charcoal which was available locally. Now it uses hydroelectricity from the Sharavati Power Project.
  • The other raw materials used in this industry are manganese, limestone, dolomite, chromite, silica, etc. These raw materials are used in small quantities and can be transported without much difficulty. Hence, they do not materially affect the localization of this industry.
• Market
  • Another important factor influencing the localization of the iron and steel industry is the availability of market. Steel products of an integrated steel plant are quite bulky and it has been estimated that the transport cost per tonne-kilometer of steel product is about three times more than that of coal or iron ore.
  • Thus, following the theory of minimum transportation cost many centres of iron and steel production tend to be attracted by the market.
  • One of the major consumers of the steel industry is the automobile industry which in itself prefers a market location. These industries have also raised the importance of the market for the iron and steel industry.
  • About half of the metal now melted in the world’s iron and steel furnaces is scrap. Industrialized areas, especially with steel-consuming industries, are the major sources of scrap iron. Thus, the market has a double attraction, as the consumer of steel and as a source of raw materials. However, the use of scrap as raw material on a large scale is yet to pick up in India.
• Transportation
  • Both raw material & finished products are bulky and require big transportation facilities.
  • Optimum transportation cost of carrying raw material from source and finished products to market play important role in the location of Iron and Steel Industry.
  • However, setting up of large integrated steel plant boosted the growth of infrastructure, especially road and rail in these regions.
• Technology
  • With the increasing popularity of the open-hearth processes, scrap has become a very important raw material in this industry.
  • This process uses scraps as raw material (1/3 of the world’s raw material). It is easier to transport in raw form.
  • Recent technological developments in transport, the use of scrap as raw material and the agglomeration economics have made market-oriented location more advantageous than ever before.
• Port location
  • Port location provides easy and cheap means of transportation. These are highly helpful in the import of raw materials and export of the finished products. When some of the basic raw materials need to be imported or the finished Steel is to be exported, seaport locations are preferred.
  • The port locations have the additional advantage of easy and cheap means of transportations, i.e. Vizag Steel plant is an important example of this kind of location.
• Government policy
  • The ultimate responsibility of balanced regional development rests with the government and in view of this Government has invested heavily in backward areas for developing these industries for example in Jharkhand, Orissa, Chhattisgarh, etc. So this approach was in accordance with the principle of the Trickle-down theory of Growth Pole and Growth Centre.
  • At times political lobbying, political opposition, and strategic requirements also greatly influence its location. For example, VISW (Bhadaravati) was set up to fulfill defense requirements.
• Labour
  • Cheap and abundant labour is required for this industry. Therefore West Bengal and the nearby regions provide favorable locations for Industrial locations for the Iron and Steel Industry.

Major Steel Plants of India

TISCO Jamshedpur

1. This is the oldest Iron and Steel centre of India. It is a private-sector enterprise. It was established in 1907 by Jamshedji Tata at Sakchi in the Singhbhum district of Jharkhand. Later on, it was renamed as Jamshedpur after Jamshedji. It started producing pig iron in 1911 and steel in 1912.
2. Raw material is the most important determinant for the location of the TISCO plant in Jamshedpur. Besides, the later development of transportation, easy availability of labour and facilities of nearby Calcutta port along with the availability of market helped this plant to grow.
3. Currently it produces about 3 million tonnes of saleable steel. Following facilities are available to this centre
   • Haematite Iron Ore: High-grade haematite iron ore is available from Noamundi mines of Singhbhum in Jharkhand and Gurumahisani mines of Mayurbhanj in Orissa. These mines are located at a distance of 75-100 km from Jamshedpur..
   • Coal: Coal is available from Jharia (Jharkhand) and Raniganj (West Bengal) coal mines located 160 to 200 km from Jamshedpur.
   • Manganese: Manganese comes from Joda mines of Keonjhar district in Orissa.
   • Kolkata: Kolkata, located at a distance of 250 km, provides port facilities and its industrialized hinterland provides a market for the products.
   • Water: Sufficient water for cooling purposes is obtained from Subarnarekha River. In addition to this, the storage dam on Kharkai River also provides water.
   • Labour: Densely populated regions of Jharkhand, Bihar, and Orissa provide cheap labour. Major part of labour is drawn from tribal areas of the Chotanagpur plateau.
   • Good transport facilities: Jamshedpur is well connected with Kolkata, Mumbai, and Chennai by road and rail and enjoys good transport facilities. NH6 (Mumbai – Kolkata) passes near to it (part of a golden quadrilateral).

IISCO Kulti, Hirapur and Burnpur

1. Three plants at Hirapur (pig iron), Kulti (steel), and Burnpur (rolling) in West Bengal were set up in 1864, 1908, and 1937 respectively. These plants have been merged together and are known as Indian Iron and Steel Company (IISCO).
2. It was brought under government control and management in July 1972. The three plants are linked by the Kolkata-Asansol railway line. Hirapur plant produces pig iron which is sent to Kulti for making steel. The rolling mills are located at Burnpur. IISCO enjoys the following advantages
3. Iron ore: Iron ore is available from Guna mines in Singhbhum district of Jharkhand located at a distance of 285 km. Some iron ore is also obtained from the Mayurbhanj area of Orissa.
4. Dolomite and limestone are obtained from the Sundargarh district of Orissa which is 327 km away. Limestone is also available from the Gangpur and Paraghat areas of Orissa.
5. Coal/Power: It used to receive coal from Jharia, located at a distance of 137 km but now the power from the Damodar Valley Corporation is extensively used.
6. Kolkata port: It is 200 km Hirapur, Kolkata provides port as well as market facilities for IISCO products
7. Cheap labour is available from west Bengal and adjoining areas.
8. Road links with Kolkata port and other major destinations through NHs provide good transportation facilities.

 The Visveswaraya Iron and Steel Plant, Bhadravati

1. It was established as Mysore Iron and Steel Company (MISCO) in 1923 by the erstwhile state of Mysore. It is located at Bhadravati on the banks of river Bhadravati in Shimoga district of Karnataka
2. This plant was brought under state control in 1962 and was renamed as Visveswaraya Iron and Steel Ltd. after the name of great engineer Dr. Visveswaraya. This plant has got a capacity of 1.38 lakh tonnes of steel. There are plans to raise its capacity to two lakh tonnes. This centre enjoys the following advantages.
   • High-grade haematite iron ore is brought from Kemmangundi mines in Chikmaglur which is just 40 km away.
   • Coal not available in the vicinity, at the time of the setting up of the plant in 1923 the charcoal obtained from the forest wood was used for smelting because coal was not available. Now it uses hydroelectric power obtained from Sharavati Power Project.
   • Shimoga and Chitradurga supply manganese. These areas are just 50 km away.
   • The Visveswaraya Iron and Steel Plant is well connected to Mangalore port. NH4 (part of a golden quadrilateral) passes near to it.
   • The Visveswaraya Iron and Steel Plant is engaged in producing steel for defense purposes.

Bhilai Steel Plant

1. Bhilai iron and steel centre was set up in Durg district of Chhattisgarh in 1957 with the technical and financial support of the then Soviet Union. Durg happens to be a backward area. The purpose of setting up this plant was to bring prosperity to this area.
2. It started production in 1959. Its initial capacity was 10 lakh tonnes which have been raised to 52 lakh tonnes.
3. This plant produced 41.87 lakh tonnes of crude steel, 38.32 lakh tonnes of saleable steel and 2.43 lakh tonnes of pig iron in 1996- 97. It enjoys following geographical advantages:
   • It procures rich haematite iron ore from the Dalli-Rajhara range which is 80 km south of Bhilai.
   • Coal is obtained from Korba and Kargali fields of Chhattisgarh located at 225 km away. Bokaro and Jharia (720 km) also supply coal.
   • The Korba Thermal Power station is the main source of power.
   • Transportation facility is available from Kolkata–Nagpur railway line. Lies on NH6 (joining Mumbai with Kolkata) well a connected network.
   • Cheap labour available from the adjoining area (Tribal population).
   • Bhilai Steel plant lies in the Chhattisgarh basin drained by Mahanadi and its tributaries, therefore water availability is high.

Rourkela Steel Plant

1. The plant of Hindustan Steel Limited at Rourkela is situated in the Sundargarh district of Orissa It was set up with the help of the then West German firm, Krupps, and Demang, during the Second Five Year Plan (West Germany and East Germany have united to form one country now). It became operative in 1959.
2. It produced 12.40 lakh tonnes of crude steel, 11.80 lakh tonnes of saleable steel, and 0.54 lakh tonnes of pig iron in 1996-97. This plant has the following facilities for its successful operation:
   • This plant uses iron ore obtained from Sundargarh and Keonjhar districts. These iron ore sources are located within a distance of 77 km from the site of the plant.
   • Coal is obtained from Jharia coalfields located at a distance of 225 km and Talcher, located at a distance of 169 km.
   • Hydro-electric power is obtained from Hirakud Power Project, located at a distance of 150 km.
   • The plant receives manganese from Barajmda, dolomite from Baradwar, and limestone from Pumapani. These materials are located within a radius of 222 km in Orissa.
   • Water is provided from Sankh and South Koel rivers crossing near to it
   • It is well connected to NH-6 passing south to it. It is located on the main NagpurKolkata railway line and enjoys facilities of railway transport.
   • Kolkata provides port facilities and its hinterland serves as a market.

Durgapur Steel Plant

1. This plant of The Hindustan Steel Ltd. is located at Durgapur in Bardhaman district of West Bengal. It was set up in 1959 with the help of the United Kingdom. The production started in 1962. It has a total capacity of 35 lakh tonnes. It produced 12.45 lakh tonnes of crude steel, 10.93 lakh tonnes of saleable steel, and 1.14 lakh tonnes of saleable pig iron in 1996-97.
2. The Alloy Steel Plant at Durgapur has a capacity to produce 1.6 lakh tonnes of ingots steel which has been expanded to 2. lakh tonnes of crude steel. The following geographical factors favour its location and growth.
   • Iron ore comes from Bolani mines. Mayurbhanj also supplies iron ore. These areas are located within a radius of 320 km.
   • Coal comes from Jharia and Raniganj close to it.
   • Limestone is obtained from Birmitrapur in Sundargarh and manganese from Keonjhar district of Orissa.
   • Hydroelectricity is available from Damodar Valley Corporation.
   • Plenty of water is available from Durgapur Barrage built across the Damodar River.
   • NH-2 connecting Delhi with Kolkata passes through it. Lies on Kolkata-Asansol railway link connecting it to parts of the country
   • Cheap labour available due to high population density
   • Kolkata port close to it. Kolkata provides a rich hinterland for the market.

Bokaro Steel Plant

1. A new public sector company, Bokaro Steel Ltd. was formed in 1964 to erect a steel plant with the collaboration of the erstwhile Soviet Union at Bokaro near the confluence of the Bokaro and Damodar rivers in Hazaribagh district of Jharkhand. It is the second plant set up with the Soviet help. It started production in 1972. Its initial capacity was 10 lakh tonnes which were raised to 40 lakh tonnes. It is the largest Indian & Steel making centre, engaged in manufacturing of rails.
2. There are plans to raise its capacity to 100 lakh tonnes making it the largest iron and steel-making centre in India. It produced 36.44 lakh tonnes of crude steel, 30.46 lakh tonnes of saleable steel, and 2.6 lakh tonnes of pig iron in 1996-97. This achievement has been made possible due to the following few geographical factors:
   1. It receives iron ore from the Kiriburu mine in Orissa.
   2. Coal is obtained from Jharia coalfields located at a distance of 65 km.
   3. Lies on the confluence of Bokaro and Damodar rivers-water availability. Hydroelectricity is obtained from Damodar Valley Corporation.
   4. Kolkata is just 300 km from it, provides port facilities. NH2 (connecting Delhi and Kolkata) passes just north to it.
   5. Cheap labour are available from adjoining areas (tribal population).

Salem Steel Plant

1. The plant has been set up at Salem in the Salem district of Tamil Nadu. The plant has the advantage of rich iron ore and limestone, which is readily available in the adjoining areas. It also enjoys the facilities of cheap power, charcoal, and a vast market. The iron ore available here has low sulphur and phosphorus content and is suitable for producing special grade iron and steel.
2. The Salem Steel Plant is a major producer of world-class stainless steel and is in a position to export stainless steel to some of the advanced countries such as the USA, Mexico, Australia, and some countries of South-East Asia.
   • The adjoining area is rich in iron ore. This ore is converted into higher grade and then smelted in plant
   • Hydroelectricity is obtained from the nearby Mettur dam.
   • It is well connected to Pondicherry and Coimbatore by the highway.
   • Major producer of the world-class stainless steel export to USA, Mexico, Australia and SE Asia.
   • It works on the state-of-art technology and therefore not much labour is required.

Vishakapatnam Steel Plant

1. This integrated steel plant has a unique location on the seaport. In fact, it is the first shore-based steel plant in the country. Although the foundation stone of the plant was laid in 1972, the construction work could not start in the real sense till February 1982 when Rashtriya Ispat Nigam Limited was incorporated as a public sector company to implement the construction of the plant.
2. The plant management intends to go in for massive up-gradation of technology and the skill of its personnel which will be required if the natural gas from the Krishna-Godavari basin is to be utilized to cut down cost. The natural gas requirement is placed at one billion cubic meters (BCM) a year and negotiations are in progress with the Reliance Group in this connection. The plant has the following advantages
   • Most sophisticated technology.
   • Second largest producer of iron & steel in India.
   • Port location makes import and export easy.
   • Major export-oriented steel plant of India.
   • High-quality rich iron ore deposits are available in the Bailadila area of Chhattisgarh.
   • Coal: It uses imported coke, thus relieving pressure on Indian coal mines. Also well connected to the coalfields of Damodar Valley.
   • Lies on NH-5 connecting Chennai with Kolkata.

Vijaynagar Steel Plant
This plant has been set up at Tomagal near Hospet in the Bellary district of Karnataka. It has an installed capacity of 30 lakh tonnes. The production of mild steel will be its special feature. This plant enjoys the following facilities:

• Iron ore is obtained from the Hospet region located in close proximity.
• Coal is obtained from Singarerni in Andhra Pradesh and Kanhan valley in Chhattisgarh.
• Hydroelectricity is obtained from closely located Tungabhadra dam.

Mini steel plants

• A mini steel plant is a small plant for the manufacture of steel. These plants use pig iron or scrap iron as their raw materials. These are the secondary units that use steel scrap and sponge iron as raw material and electric and induction furnaces for the processing of raw materials.
• Mini steel plants are located away from integrated plants to meet the local demands. They are mainly concentrated around urban areas.
• A large no of decentralized secondary units produce steel by using steel scrap/sponge iron as raw material and electric furnace and induction furnace for processing of raw materials.
• Mini steel plants produce mild steel, alloy steel stainless steel and are located near the market areas.
• Now the norms related to minor steel plants have been liberalized for their efficient operations.

Merits of mini steel plants

• Lowest cost of establishment: Mini steel plants require less capital for their establishment as compared to larger plants.
• Short gestation period: The production process of steel in mini steel plants are shorter than that of major plants making them more time-efficient and competitive.
• Greater flexibility in operation: Mini steel plants provide greater flexibility in their operations as compared to larger plants, since the raw materials already have steel content, there is greater flexibility in operations.
• Instrumental in decentralized industrialization: Since these industries are established near urban and semi-urban areas with low capital requirements, they cover more area as compared to larger steel plants, thus contributing in balanced regional growth.
• Better position to meet local needs: Mini steel plants are well suited to meet the local demands within a short span of time such as demand from utensil setups, steel rods for construction, etc.
• Since Mini steel plants use locality available raw materials, it has contributed in the decentralization of transportation and distribution networks.
• Produces mild steel at low cost: Since the raw material involved in the production of steel contains scrap and pig iron, the cost of processing is low.
• Requires smaller infrastructure facilities: The infrastructure facilities required for steel production is very less as compared to larger units due to the nature and process involved in the production of steel.

Problem faced by mini steel plants

• Capital: Though the capital requirement is less as compared to larger plants, but still it requires large capital investment which small entrepreneurs find difficult to manage. Many plants have been established with foreign aid.
• Lack of technology: Till the 1960s and 70s, India had advanced technology from the west and the efficiency of the plants was high, but after oil crisis, there was a steep hike in energy cost and other inputs which reduced the margin of profits. Therefore, a lower level of investment was made in technological development. Except for Bokaro and Vizag, efficiency suffered in other plants.
• Low productivity: Per capita labour productivity is one of the lowest for Mini steel plants in India due to the presence of an excessively large no of labours. There is need of retraining and redeployment of labour to increase efficiency.
• Low productivity utilization: The productivity utilization rarely exceeds 80 percent due to strikes, scarcity of raw material, energy crisis, inefficient management, infrastructure bottlenecks, and political influences.
• Heavy demands: Due to increasing demand, large quantities of steel and its raw material like coal (imported from Australia) is being imported which is adversely affecting our foreign exchange reserves. It needs to be saved by increasing production to increase export.
• Blast furnace productivity is low: It is due to disharmony between the profile of resources and available technology. Indian iron one has high alumina and adverse silica-alumina ratio, while west-based technology operates well in high silica. This affects productivity. Indian coal is inferior due to its high sulphur and ash content.
• Electric arc furnaces use a large amount of power: Since in India power cost is high, they nullify the advantages of raw materials. Moreover, still we are using an outdated energy-inefficient processes like the open-hearth process.
• Indian steel is becoming expensive due to heavy taxation and high input cost.
• Increasing competition in the international market from new products like carbon fibres, composite material, reinforced plastic, etc. are also affecting the profitability of mini steel plants in India.
• Since electric arc furnaces are used, they are affected by power shortages.
• Steel scrap is imported making the plan uneconomical due to the high cost
• 75% of plants have been shut down and the prospects of up-gradation are also low. The import duty over scrap has been increased which is depleting the profitability of mini steel plants in India.

List of Steel Plants in India

Future prospects of the steel industry

• The potential for growth of this sector is enormous. This can be gauged from the fact that the per capita consumption of steel is around 29 kg whereas the world average is 150 kg.
• Even to equal the world average, with India’s population over a billion, India will have to touch the production figure of 150 million tonnes (present consumption 29 million tonnes) in order to match the global average.
• The generation of such kind of demand is dependent on health and rate of growth of other sectors of the economy like roads, power, railway, ports, drinking water, housing and manufacturing.

New projects as an opportunity

• The government has plans to expand approximately 10,000 km of the current road network to four lanes, which will generate a significant demand for domestic steel. As the country anticipates the need for more Greenfield capacities in the coming years, the steel sector can expect steady growth opportunities.
• Additionally, the railway's track renewal plan covering about 3,500 km will greatly increase the steel demand. The introduction of more high-speed trains, the growing need for coaches and wagons, and the construction of underground railway systems will further contribute to the increased demand for steel, ultimately benefiting the iron and steel industry.

Conclusion

In conclusion, the Jute Textile Industry and the Iron and Steel Industry are crucial to India's economy and development. Both industries have faced challenges in the past, but have overcome them through diversification, modernization, and government support. These industries have not only generated employment but have also contributed significantly to the growth of other sectors and the overall infrastructure of the country. With the right policies and continued efforts in research and development, the future prospects of both the Jute Textile and Iron and Steel industries seem promising.

Frequently Asked Questions (FAQs) of Locational factors of Cotton, Jute, Textile, Iron & Steel, Aluminum

What are the main geographical factors influencing the location of industries?

The main geographical factors influencing the location of industries include raw materials, power, labor, transport, market, water, site, and climate. These factors determine the availability of resources, accessibility to markets, and the overall suitability of a location for a specific industry.

What are non-geographical factors that influence the location of industries?

Non-geographical factors that influence the location of industries include capital, government policies, industrial inertia, efficient organization, banking facilities, and insurance. These factors affect the financial and regulatory aspects of setting up and running industries in a particular location.

What is the difference between footloose and non-footloose industries?

Footloose industries are industries that can be placed and located at any location without being affected by factors of production such as resources, land, labor, and capital. These industries often have spatially fixed costs, meaning the costs of products do not change regardless of where the product is assembled. Examples include diamonds, computer chips, and mobile manufacturing. Non-footloose industries, on the other hand, generally require raw material availability within a time limit to make products and are more dependent on specific locations.

What are the different categories of industries based on the pollution index?

The pollution index categorizes industries into four categories based on their pollution load: Red category (industries with a pollution index score of 60 and above), Orange category (industries with a pollution index score of 41 to 59), Green category (industries with a pollution index score of 21 to 40), and White category (industries with a pollution index score incl. & up to 20).

How did the partition of India affect the country's industries?

The partition of India affected industries in several ways, including the disruption of the free flow of goods between India and Pakistan, increased dependence on imported raw materials, a decline in demand for Indian manufactured products in Pakistan, migration of Muslim artisans and skilled workers, and changes in the location pattern of industries due to security concerns.