Account for the present location of iron and steel industries away from the source of raw material, by giving examples.
Approach · directive: “account for”
What it asks · Explain why newer steel plants sit far from ore and coal — transport, ports, markets, technology and policy — with Indian and world examples.
It asks 2 things — answer each
- Account for: the reasons iron and steel plants now locate away from ore and coal
- Give examples, Indian and international
Open with · NCERT notes that Pittsburgh's steel used local coal but iron ore from Minnesota, about 1500 km away, via the Great Lakes; cheap movement of bulk inputs, not mine proximity, now decides steel location.
Cover
- Cheap bulk transport: railways, slurry pipelines and large bulk carriers make port and market sites nearly as cheap as mine sites.
- Imported coking coal: around 95% of the steel sector's coking coal is imported (2026), so coastal plants import inputs and export steel.
- Market pull: steel is consumed in cities and industrial belts, so plants near buyers save on distributing finished goods.
- Technology: beneficiation, pellets and direct reduction cut weight loss; electric furnaces on scrap and sponge iron need power, not ore; Steel Scrap Recycling Policy 2019.
- Other factors: water, power, land, capital and labour, plus forest clearance and displacement limits in mining tracts.
- Examples: Visakhapatnam, Dolvi and Hazira on the coast; Mandi Gobindgarh on scrap; Japan and South Korea on imported ore and coal.
Close with · The National Steel Policy 2017 aims to cut coking coal import dependence from 85% to 65% by 2030–31; even so, ports and markets will keep pulling new capacity.
Add value (verified)
- Around 95% of the steel sector's coking coal requirement is met through imports (2026).PIB — Government Notifies Coking Coal as Critical & Strategic Mineral (Ministry of Coal, 29 Jan 2026) ↗“Currently, around 95 % of the coking coal requirement of the steel sector is met through imports, leading to significant foreign exchange outgo.”
- The National Steel Policy 2017 seeks to cut coking coal import dependence from 85% to 65% by 2030–31.PIB — India's Steel Sector Advances Towards Self-Reliance (Ministry of Steel, May 2026) ↗“It also seeks to reduce coking coal import dependence from 85% to 65% by 2030–31 .”
- The Steel Scrap Recycling Policy (2019) aims to raise domestic scrap availability.PIB — India's Steel Sector Advances Towards Self-Reliance (Ministry of Steel, May 2026) ↗“The Steel Scrap Recycling Policy (2019) has been notified to boost the availability of domestic scrap.”
Question: UPSC's CS (Main) 2020, GS Paper I — paper ↗. Approach: Minimalist IAS, checked 16 Oct 2026 (how we verify) — UPSC publishes no model answers. ·
Model answer· 222words · Minimalist IAS
Steel once clung to coal and ore, yet even Pittsburgh used local coal with iron ore from Minnesota, about 1500 km away, shipped cheaply across the Great Lakes (NCERT). Cheap movement of bulk inputs, not mine proximity, now decides location.
Why plants locate away from raw materials
- Cheap bulk transport: railways, slurry pipelines and giant bulk carriers make a port or market site nearly as cheap as a mine-side one.
- Imported coking coal: around 95% of the steel sector's coking coal is now imported (Ministry of Coal, 2026), so coastal plants import inputs and export steel.
- Market pull: steel is used in cities and industrial belts, so plants near buyers save on distribution.
- Changed technology: pellets and direct reduction cut weight loss; electric-arc and induction furnaces run on scrap and sponge iron, helped by the Steel Scrap Recycling Policy 2019.
- Limits near mines: forest clearance, displacement and scarce water in mining tracts push plants elsewhere.
Examples
| Plant | Pull |
|---|---|
| Visakhapatnam, Andhra Pradesh | Port, imported coal |
| Hazira (Gujarat), Dolvi (Maharashtra) | Coast and western markets |
| Mandi Gobindgarh, Punjab | Scrap, nearby buyers |
- Abroad: Japan and South Korea, with almost no ore or coal, built coastal works on imports.
The National Steel Policy 2017 aims to cut coking coal import dependence from 85% to 65% by 2030–31; even so, ports and markets will keep pulling new capacity.
Prepared by Minimalist IAS to the answer standard of Shivam Singh (mentor, 7 years) · facts checked against official sources (how we verify) · updated 16 Oct 2026. UPSC publishes no model answers: compare your structure and coverage with this, then write your own.
