GROWTH AND PROBLEMS OF MAJOR INDUSTRIES

Importance of Large Scale Industries Balanced Economy Increase in Wealth More capital Formation Increase in Employment Increase in National Income Less Pressure of Population on Agriculture

Economic Stability Development of Agriculture National Defence Self Dependence Exp[ort Promotion Import Substitution Increase in Government Income Increase in Standard of Living Low Cost goods

Core Features of Iron & Steel Industry Iron and Steel industry is of great importance among the basic and key industries of india. These industries are essential for the economic and social development of the country and also very crucial for its defence. Consumption of iron and steel is an index of industrial development of a country.

Key Points Of Iron & Steel Industry Production of iron and steel in India constitutes 1.5% of world & 6.7% of Asia’s production. India was the 4th largest producer of steel in 2012 China is the largest producer of steel in the world A cumulative capital worth Rs. 90000 crore is lying invested in this industry

Development of iron & steel industry In 1830 the first attempt was made to manufacture iron with modern techniques in south India In 1907 setting up of Tata iron and steel works at Sakchi (Jamshedpur) Bihar In 1919 Indian iron and steel works was setup at Burnpore near Asansol in Bengal In 1923 Mysore iron and steel works was founded at Bhadavati(Mysore)

In 1973 government established Steel Autority of India ltd In 1973 government established Steel Autority of India ltd.(SAIL) for the development of iron and steel industry. A National Steel institute has been established at Puri to cater to the needs of training,service,consultancy and research and development of the steel produing belt of southern and eastern regions.

Types of Steel Plants in India Integrated steel plants Mini steel plants

Integrated steel plants Large steel plants are included in it. These produce soft steel n large quantity Currently nine of these steel plant working in the public sector which are Bhilai , Durgapur, Rourkela , Bokaro , IISCO,Alloy steel plant,saleem steel plant , Vishveshwarya steel plant and Vishakhapatnam steel plant of these first eight are owned and managed by Steel Authority of India(SAIL)

Mini steel plants These producing steel by electric furnaces Steel is manufactured out of scrap and sponge iron Presently there are 196 mini steel plants in India of which 179 are producing steel They account for the 30% steel production of the country

Problems of Iron and steel industry Scarcity of coal & power Obsolete Machinery & backward Technology Dependence on foreign investment Problem of transport Lack of efficient engineers High prices Industrial disputes

Less utilization of production capacity Disequilibrium between demand and supply Excess staff Threat from international competition Hike in prices of steel scrap

Suggestions for the improvement of Steel industry Improvement in techniques Diversification Arrangement of best quality coal Use of full capacity Efficient management of public sector enterprises Development of small factories Solution of labour problem

Arrangement of training Price stability