The raw materials required for iron and steel industries are iron ore, coal, manganese and limestone.
The major iron and steel industries of India are located in places where raw materials are available in plenty. The Chotanagpur plateau and the Damodar valley of Peninsular plateau including the states of Chhattisgarh, Jharkhand, Odisha and West Bengal are the mineral belts of India.
The coal from Damodar valley, iron ore from Chhattisgarh, Odisha and Jharkhand, manganese from Odisha, hydroelectricity from Hirakud and Damodar valley projects, thermal power from the thermal power stations of Damodar belt, nearness to Kolkata port, good road and railway network, availability of fresh water and easy availability of human resources are the factors for the location of iron and steel industries in the northeast of Peninsular India. The cost of production can be reduced by setting up industrial units here.