The distributional pattern of iron and steel industry is influenced by the raw materials (iron ore and coal), market and sea port facilities. In India raw materials, mainly iron ore and coal have played significant role in the location of early steel plants.
In this respect the mineral-rich region of north-eastern part of the Peninsular India covering the states of Jharkhand, Bihar, Orissa and adjoining Madhya Pradesh, Chhattisgarh and West Bengal has the largest concentration of steel plants. This region is quite rich in iron-ore, coal and different minerals used in the industry.
The richest iron ore
deposits of the country lie in the iron belt extending from Gurumahisani Hills in the Mayurbhanj region through the Keonjhar and Bonai to the sub-division of Kolhan in the Singhbhum district of Jharkhand (iron content over 60 per cent and estimated reserves 20,000 m tones). The Damodar valley coalfields in Jharkhand and West Bengal contain the largest coal deposits of the country. The estimates of good quality coking coal have been placed at about 1,500 m. tones.
The coal from Giridih and Jharia fields with low phosphorus content is suitable for blast furnaces. Other minerals like limestone (from the Ranchi hills), manganese (from Madhya Pradesh), silica (from Jabalpur and Dhanbad), quartz (from the Kharagpur hills near Munger) and chromite (from Jharkhand, Bihar and Orissa) etc are also available in the region.
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The Karnataka region of South India is another mineral rich region which is the secondary area of iron and steel industry in the country. Outside these two areas some new steel plants are emerging near the sea coast where port facilities are available.
The Iron and steel industry of India consists of 11 giant integrated plants, 145 mini steel plants and a number of rolling, re-rolling mills and foundries. Except TISCO all big plants lie in public sector whose management is supervised by the Steel Authority of India Limited (SAIL).