Industrial Development Sugar Industry, Mineral Based Industries, India: Iron and Steel Plants Part 3

Doorsteptutor material for UGC is prepared by world's top subject experts: Get complete video lectures from top expert with unlimited validity: cover entire syllabus, expected topics, in full detail- anytime and anywhere & ask your doubts to top experts.

Download PDF of This Page (Size: 268K)

Sugar Industry

Sugar industry is the second largest agro-based industry of India. If we take Gur, Khandsari and Sugar together, then India becomes the largest producer of sugar products in the world. In 2003, there were about 453 sugar mills in the country. This industry employs about 2.5 lakh people.


The production of sugar depends upon the production of sugarcane and it fluctuates with the fluctuations in the production of sugarcane. The total sugar production in 1950-51 was 11.3 lakh tonnes. It increased to 201.32 lakh tonnes in 2002-2003. In 2003-04, it fell down to 138 lakh tonnes.


Most of the sugar mills are concentrated in six states, namely Uttar Pradesh, Bihar, Maharashtra, Tamil Nadu, Karnataka, and Andhra Pradesh.

Uttar Pradesh: It holds a significant position in the production of sugar. The sugar mills are highly concentrated in the western Uttar Pradesh in the districts of Meerut, Muzaffar Nagar, Saharanpur, Bijnor, Moradabad, and Bulandshahar.

In the eastern Uttar Pradesh Deoria, Basti, Gonda, and Gorakhpur are important centres. Uttar Pradesh has largest area under sugarcane cultivation. It has about half of the total area under sugarcane cultivation. But it was able to produce only 1/3rd of the total production of sugar (2003-04) in the country. Evidently, per hectare production as well as sugar contain in produce are relatively low.

Maharashtra: Maharashtra is the most important state in the peninsular India producing about 1/4th of the total sugar production in India. Major centres of sugar production are Nasik, Pune, Satara, Sangli, Kolhapur, and Sholapur.

Andhra Pradesh: East and West Godavari, Visakhapatnam, Nizamabad, Medak, and Chittoor districts are the centres of sugar mills in this state.

Tamil Nadu: In Tamil Nadu North and South Arcot, Madurai, Coimbatore, and Tiruchirappalli are the important districts for sugar production.

Karnataka: Belgaum, Mandya, Bijapur, Bellary, Shimonga, and Chitradurga are sugar producing districts.

Other States: Bihar, Gujarat, Punjab, Haryana, and Rajasthan are other states where sugar mills are located.

The following are the factors for the localization of sugar industry:

  1. Sugarcane is the main raw material for making sugar. Sugar mills can be set up only in the sugarcane producing areas. Sugarcane gets dry soon after harvesting. It can neither be stored nor kept for long period of time. Sugarcane should be taken immediately to the sugar mills after harvesting.

  2. Transportation cost of sugarcane is high. Generally, sugarcane is transported through bullock carts which can carry it up to 20-25 kilometres. Recently tractor trolleys and trucks have been used to carry sugarcane to the sugar mills.

    Beside these factors, capital, market, labour and power also play significant role in localization of this industry.

Reasons for Shifting of Sugar Industry from North India to Peninsular India

Over the period, sugarcane industry is gradually shifting from north Indian states to states in Peninsular India. Some of the important reasons are as follows:

  • The production of sugarcane per hectare is higher is Peninsular India. In fact, sugarcane crop grows well in the tropical climate of south India.

  • The sucrose content is higher in the tropical variety of sugarcane grown in the south.

  • The crushing season in south India is longer than in north India.

  • In south India most of the mills have modern machinery.

  • Most of the mills in Peninsular India are in cooperative sector, where profit maximization is not the sole objective.

Mineral Based Industries

Industries which use minerals as the raw material are called mineral based industries. Iron and steel industry is the most important among these industries. Engineering, cement, chemical, and fertilizer industries are also important mineral based industries.

Iron and Steel Industry

Iron and steel industry is a basic industry and its products serve as a raw material for a number of other industries. Although iron and steel manufacturing activity in India is very old, modern iron and steel industry started with the establishment of Bengal Iron and Steel Works at Kulti in West Bengal in 1817. Tata Iron and Steel company was established at Jamshedpur in 1907. This was followed by Indian Iron and Steel plant at Burnpur in 1919. All the three plants were established in the private sector. The first public sector iron and steel plant, which is now known as Visvesvaraya Iron and Steel Works, was established at Bhadravati in 1923. The iron and steel industry made rapid progress after independence. The production capacity has increased in all the existing units. Three new integrated steel plants were established at Rourkela, Bhilai and Durgapur. Bokaro steel plant was established under public sector in 1964. Bokaro and Bhilai plants were set up with the collaboration of the former Soviet Union. Durgapur steel plant was set up in collaboration with United Kingdom while Rourkela plant was established with the help of Germany.

Vishakhapatnam and Salem plants were set up afterwards. At the time of independence, India produced only a small quantity of iron and steel. Production of finished steel in the country was only 10 lakh tonnes in 1950-51 which has increased to 23.8 million tonnes in 1998-99. The major iron and steel plants of India are situated in the states of Jharkhand, West Bengal, Orissa, Chhattisgarh, Andhra Pradesh, Karnataka, and Tamil Nadu. Besides there are about 200 mini steel plants in India with a capacity of 6.2 million tonnes per annum. Mini steel plants produce steel from scrap or sponge iron. These units constitute an important component of iron and steel industry in the country. Most of the steel plants are located in and around Chhota Nagpur plateau which is endowed with rich deposits of iron ore, coal, manganese, and limestone. The details of raw material, ownership, and location is given in the following table:

India: Iron and Steel Plants and Their Source of Raw Materials

India: Iron and Steel Plants and Their Source of Raw Materials
Title: India: Iron and Steel Plants and Their Source of Raw Materials

Sl. No.

Name of the Plant



Raw Material obtained from








Private Sector


Mayurbhanj Singhbhumi






Public Sector

Jharia/ DVC

Singhbhumi Mayurbhanj






Public Sector

Sharavati Project



Chitradurga Shimoga




Public Sector

Bokaro/ Jharia/ Hirakud Project

Sundargarh Keonjhar


Bara Jamda




Public Sector

Kargali, Korba

Dalli- Rajhara






Public Sector


Bolangiri (Keonjhar)

Birmitrapur (Sundargarh)

Jamda (Keonjhar)




Public Sector

Jharia/ DVC

Kiriburu in Keonjhar Distt.






Public Sector


Salem Distt.

Salem Distt.

Salem Distt.




Public Sector

Damodar Valley

Bailadila, Chhattisgarh

Chhattisgarh and MP


Centres of Iron and Steel Industry in India

Image of Centres of Iron and Steel Industry in India

Centres of Iron and Steel Industry in India

Developed by: