Raw Material:

The earliest industries in India developed near the sources of raw material. and chhotanagpur plateau being concenteratedwith iron ore is a good place for industries.

Transport:

Transport is required for carrying raw materials to manufacturing units and finished products to the market

Labour:

The availability of both unskilled and skilled, or technically qualified manpower, is an important factor in the location of industries.

Water:

Water is required to produce hydel power and in the process of manufacturing for cleaning, cooling, washing, etc. The industries which heavily depend on water, for one purpose or the other, include iron and steel (for cooling)

Energy:

The iron and steel industry has been traditionally tied with the coal resources, as it uses coking coal for fuel.

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Factors responsible for concentration of iron and steel industries in Chhota Nagpur Plateau :

(i) Low cost of iron-ore.

(ii) High grade raw material in proximity.

(iii) Cheap labour.

(iv) Vast growth potential in the home market.

(v) Good transport connectivity.

(vi) Availability of water resource

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