Iron and steel industries are heavy industries using very bulky raw materials. Therefore, its location is governed by close proximity to raw materials and good transport system. The north eastern and southern parts of Peninsular India are mineral rich suitable for location of Iron and Steel Industry. It is located near the iron and coal deposits, particularly at Jamshedpur in Bihar and in the Chhotanagpur area, bordering West Bengal, Bihar, Orissa and Madhya Pradesh, because of the following reasons:
(i) Water is available from reservoirs and rivers.
(ii) Means of transport facilities are available here.
(iii) Goods of the peninsular states have supported this industry.
(iv) Power is obtained from big hydel-power projects situated here.
(v) Skilled labour is available from nearby states.
(vi) All the 10 integrated plants are located in Peninsular India.
(viii) Technical expertise
All the raw materials like iron ore, manganese, limestone, cooking coal are mined in the peninsular India.