Factors/Resources affecting the location of a proposed Iron and Steel Plant on developed Dweep.

● Iron-ore: There are very large deposits of low grade iron-ore in India. Long distance transportation of the ore would be uneconomic.


● Coal: The only coal field contains rich deposits of high grade coal. vTransportation of the coal is by railway, which is relatively cheap.


● Limestone: This is widely available over the island, but the purest deposits are in the Chuna mountains.


● Water: Both the tributaries of river Neel carry sufficient water to supply a large iron and steel plant in all seasons. The sea water, because of its high salt content is unsuitable.


● Market: It is expected that the chief market for the engineering works of Rajdhanipur. Transports for the products mainly small steel bars and light steel plates would be relatively low.


● Labour Supply: This will have to be recruited mainly from the unskilled workers in the 3 fishing villages of Hill, Rah and Sing. It is expected that most workers will commute daily from their present homes.


● Port Facilities: These are at present minimal. There is a good, deep natural harbor at port Pashimpuri developed to import metal alloys.





Resource



Distance from X



Distance from Y



Weighting 1 – 10



Distance X weight for site X



Distance X weight for site Y



Iron-ore



50 km



10 km



10



10



10



Coal



50 km



60 km



10



10



10



Limestone



60 km



10 km



10



10



10



Water



50 km



10 km



10



10



10



Chief market



15 km



65 km



10



10



10



Labour supply



15 km



65 km



10



10



10



Total =



240



220



50



50



50







Both the sites, X and Y, have its own pros and cons. While for site X, raw materials like iron ore and water are far, for site Y market and labour is far.


a. We feel that site X would be more appropriate since labour supply and market availability is crucial for the success of any enterprise.


b. We feel that site Y is more appropriate since the proximity of raw materials like iron ore, limestone and water will reduce the cost of production a part of which can be invested in bringing in skilled labour and transporting finished product to chief market.



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