Chotanagpur area along with the region, which includes a part of West Bengal, Orissa, Bihar and Eastern Madhya Pradesh accounts for the highest concentration of minerals in India. It is also called the Damodar basin.
- It is the most important centre where coal, which is a raw material in Iron and Steel industry, is found in abundance. It is good for smelting iron-ore.
- Iron-ore is found in abundance and it occurs with coal in close proximity which favours the installment of iron and steel industry in this region.
- Other supplement minerals e.g. manganese, bauxite and limestone are found in this part of the plateau in abundance.
- Water, which is required, is provided by Damodar river and its tributaries, which is a perrineal source of water.
- Cheap and sturdy labour from the tribes of Chotanagpur and from neighboring mining areas is available.
- This area possesses a fine network of railways and roadways which help in easy transportation of the raw materials and finished products.
- The area is near the port which helps in import of machinery and export of manufactured steel. Steel is locally consumed by Ranchi factory, etc.