AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
It would be most economical to set up a steel plant near the coking coal source.
The raw materials are needed in the ratio 4:2:1 (iron ore : coking coal : limestone). Since iron ore is required in the largest quantity (4 parts), one might think locating near it is ideal. However, iron and steel is a heavy industry with high transportation costs. Coking coal is needed in significant quantity (2 parts) and is the most expensive to transport over long distances. Historically, this is why the Chhotanagpur plateau became India's major steel hub — it offered proximity to high-grade raw materials at low cost, cheap labour, and good transport networks.
Source: Iron and Steel Industry, Chapter 6