The correct option is (a).
Explanation
The iron and steel industry is classified as a heavy, weight-losing industry. This means the combined weight of the raw materials (iron ore, coal, limestone) is significantly higher than the weight of the finished product (steel). Consequently, the location of these industries is primarily determined by the objective of minimizing transportation costs.
Statement-wise Analysis
- Statement 1 is Correct: Because the raw materials used in steel production are bulky and heavy, transporting them over long distances increases production costs substantially. Therefore, steel plants are strategically located near sources of raw materials. For instance, the concentration of the steel industry in the Chota Nagpur Plateau region is due to the proximity of high-grade iron ore, coking coal, and other minerals.
- Statement 2 is Incorrect: The steel industry requires a large volume of labour, both skilled and unskilled. To maintain cost-efficiency, industries prefer locations where labour is available at competitive rates. Avoiding areas with cheap labour contradicts basic economic principles of industrial location.
- Statement 3 is Incorrect: The industry is highly dependent on efficient transport networks. It requires robust railway and road infrastructure to assemble massive quantities of raw materials at the plant site and to distribute the finished steel to consumption markets. It is impossible for a heavy industry to be independent of transport networks.
Key Takeaway: The location of the steel industry is governed by the availability of raw materials due to the weight-losing nature of the manufacturing process, necessitating proximity to iron ore and coal deposits to minimize transport costs.