Iron and Steel Industry is located in Damodar valley because of:
- The raw material required for Iron and Steel Industry such as coal, limestone and manganese are readily available in the neighbouring areas of Orissa, M.P., Biharand Damodar Valley itself.
- This area is well connected with the means of transport like roads and railways. In fact it the transport nerve centre in East India.
- Damodar Valley Corporation (DVC) is a very good source of power. The Iron and Steel industry is able to meet all its power requirement from DVC.
- Labour and other facilities are available from surrounding States.
- Iron mid Steel industry requires water in plenty. Damodar Valley through its rivers, dams and canals fulfils this requirement also.