GK Chronicle GK Chronicle

Indian Geography / Industries in India

Development of Iron and Steel Industry in India

    The development of iron and steel industry in India is utmost important for rapid industrialization of the country. The iron and steel industry will generally be located where Manganese, Coal, Iron ore and Limestone are available. Iron ore, Coking coal and Limestone are needed in the proportion of 4:2:1. Manganese is necessary for hardening the steel.

    Steel and Iron Industry Development

    • During pre-independence era, there were only 3 main steel plants. The first steel plant in India, Tata Iron and Steel Company (TISCO) was established in Jamshedpur in the year 1907.

      The other two being Indian Iron and Steel Company (IISCO) established in 1919 at Burnpur (West Bengal) and Visvesvaraya Iron and Steel Plant (VISL) set up in 1923 at Bhadravati in Karnataka.

    • During the second five year plan, 3 public sector steel plants were established. Bhilai steel plant was set up with the help of USSR.

      Rourkela steel plant is established with the help of West Germany and Durgapur steel plant was established with the help of UK.

    • During the third five year plan, the biggest steel project in India, the Bokaro steel plant was established with the help of USSR.

      During fourth and fifth five year plans, three new public sector steel plants were set up at Salem (Tamil Nadu), Visakhapatnam (Andhra Pradesh) and Vijayanagar near Hospet (Karnataka).

    • Steel Authority of India Ltd (SAIL) was set up in 1973. It is a Government owned Public Sector Undertaking (PSU) headquartered at New Delhi.

      It is managing the steel plants at Bhilai, Durgapur, Bokaro, Rourkela, Burnpur and Salem. Chota Nagpur Plateau region has the maximum concentration of iron and steel industries.

    • As part of liberalization process, Government initiated many reforms like removing licenses, removing trade restriction of imports, disbanding pricing and distribution controls, reducing tax rates, etc.

      As a result of reforms process, many steel plants in private sector were established and are still getting established. Some of the steel plants in private sector are Jindal Steel and Power Limited, Bhushan Steel Limited, Essar Steel India Limited, JSW Steel, etc.