A humble beginning of the modern steel industry was reached in India at Kulti in Bengal in 1870. But the conception of larger production became visible with the establishment of a steel plant in Jamshedpur in Bihar in 1907. It started production in 1912. The new township was named after Jamshedji Tata. Then came Burnpur and Bhadrawati Steel plants in 1919 and 1923 respectively. It was, however, only after Independence that the steel industry was able to find a strong foothold. Excluding the Jamshedpur plant of the Tatas, all are in the public sector and looked after by Steel Authority of India Ltd. (SAIL).
Bhilai and Bokaro plants were set up with Soviet collaboration. Durgapur and Rourkela came up with British and West German technical expertise, respectively.
Iron and steel industry characteristically is a heavy industry. All its raw materials are heavy and colossal. They encompass iron-ore, coking coal and limestone. Location of this industry is thus governed by its proximity to raw materials, predominantly coking coal. The finished products in turn are also heavy and need efficient transport system for their distribution. The Chhotanagpur plateau bordering West Bengal, Bihar, Orissa, and Madhya Pradesh, therefore has been the natural nerve-centre of this industry. Iron and Steel industry is also a basic or key industry. It forgoes the heavy machines and tools industry. Umpteen light, medium, small and cottage industries depend on it, as a reindex of modernisation and industrialisation of a country. The industry also necessitates enormous investment, staple infrastructure, principally able means of up-to-date transport and communication, not leaving out plentiful fuel or power supply. However it does not directly create enough jobs, adjusting with the huge investment. It demands incessant updation of technology, "R and D" (Research and Development) support, and most importantly a long-awaiting time before it begins to produce dividends. All these contemplations made the government to enter this key industry in a large scale on its own, notwithstanding its natural shortcomings or limitations. Visakhapatnam Steel plant has the advantage of importing quality coking coal from abroad and is at ease in exporting its products straight to the world market. In 1997-98 it had produced 2.2 million tones of pig-iron. The plant has been able to uphold international standards of competence. In the same year it had exported almost 0.8 million tones of steel and pig-iron, fetching foreign exchange of Rs. 600 crore.
Mini Steel Plant - As the name suggests, these plants are of rather smaller size. They produce steel in electric furnaces, using scrap and sponge iron. They produce both mild steel and alloy steel of given specifications. In 1997-98 they had yielded 8.5 million tones of crude steel. Virtually 200 mini plants have been working day-in and day-out in the country.
In comparison to China, India had an excellent headstart, with the country producing 1.7 million tones of pig-iron and 1.5 million tones of steel in 1950-51. By now China has overpowered India a number of times. Its steel production was 59 million tones in 1988.
With 7.2 million tonnes, progress of iron and steel industry has been fairly sluggish. It was only in the last decade that the production had really gained vigour. It was over 23 million tonnes in 1997-98.
