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Saturday, May 1, 2021

Industrial Development of Jharkhand- JPSC/JSSC


Nature has provided the state abundant supply of resources for industries. All the industries that are part of the state economics depend on these resources. Industries are instrumental in improving both employment opportunities and economic robustness. An increase in exports leads to better sales and production resulting in higher revenues that keep the other citizens' services going. 

The industries in the state may be divided into two categories: 1.) small-scale industries, 2.) large-scale industries.

Industrial Development of Jharkhand- JPSC/JSSC


All those industries, including those that, involve low capital and low production are covered under small industries. Many times, even a small industry with low capital may be seen making substantial production. All small scale industries, very small scale industries, and cottage industries like Khadi, handloom, twine, power loom, etc. are covered in this category. Based on capital, an enterprise launched with capital up to Rs. 10 crores is termed as small-scale industry category. Cottage industries require very small capital investment and mostly this is based on some hereditary skills of the entrepreneur.

The National Planning Commission has classified the cottage industries into the following categories:

I. Agro-based Industry:

  • This industry involves making products using agricultural products as inputs. Jobs like grain grinding, oil press, making jaggery, fruit jam, chutney, vinegar, tobacco, bidi, animal husbandry, trading in milk, fruits and cereals are all examples of agro-based cottage industry.

II. Textile Industry:

  • This covers jobs like cleaning cotton, spinning yarns, weaving clothes, dyeing clothes, embroidery, tailoring and trading in clothes, etc.

III. Timber Industry:

  • This is a hereditary occupation for some people while others take up this work for making profits. This includes jobs like lumbering, making furniture, toys, trading in timber, etc.

IV. Leather Industry:

  • Tanning, leather dyeing, making leather products like shoes and purses, producing bone manures and bone buttons, etc. are covered under this leather industry.

V. Metal Industry:

  • Purification of crude metals, trading in old metals, making iron tools, jewelry, making metal implements used in household chores are included in this category.

VI. Clay Industry:

  • This also is generally a hereditary occupation and is undertaken by the 'Kumhar' community. This pottery is an age-old occupation. A brick kiln is another big industry in this category.

VII. Cotton Textile Industry:

  • This industry does not have a significant presence in the state. The work of spinning yarns using handlooms is being done by a specific community for a long time. 
  • Appreciating the potentials of this job, co-operative societies developed this industry and started producing some 26000 yards of clothing per annum using around 2000 handlooms.
  • There is a spinning mill in Ormanjhi, Ranchi. The Chhotanagpur Regional Handloom Weavers Society at Irba, Ranchi is a big name in the industry.

VIII. Silk Textile Industry:

  • Jharkhand is the largest producer of Tassar Silk in the country. This is produced in many districts including Ranchi, Palamu, Hazaribagh. The quality of Tassar produced here has been acknowledged at the global level and has received 'Organic Certification' at the global level.
  • 'Tassar Cooperative Society' is functioning at Bhagaiya in the Godda district of the state.
  • 'Tassar Research Centre' at Ranchi is trying to promote the silk industry as a widespread industry.

IX. Other Industries:

  • There are hundreds of activities like extraction of oil from fish, production of lac, plastic toys, bangles, colors, soaps, incense, candles, varnish, and honey collection, etc. that would get covered in this category.
These small cottage industries help to a great extent in the eradication of unemployment, better usage of resources, and promotion of handicrafts. Also, they suit the village system, as they need only a basic level of knowledge. This arguments the family income as well as reduces the pressure on agriculture. These village industries have fast turnover times and they help improve the availability of raw materials.


All the large-scale industries in Jharkhand are based on minerals. There are some 309 large and medium mineral-based industries in the state. There are several medium industries active in supplying the raw material required for the manufacture of iron and steel and they serve the needs of Tata Iron and Steel Company and Bokaro Steel Plant. The state economy may be said to be good because of these very large-scale industries.

Tata Steel Company:

  • The credit for establishing this company at Sakchi in the East Singhbhum district of Jharkhand goes to the well-reputed 'Tata Group' of India.

  • 1907: The chairperson of this group, Shri Jamshedji Tata founded the 'TISCO' company in Jharkhand. 

  • 1911: After commissioning of the plant, the production started.

  • This was located at the confluence of Suabarnarekha and Kharkai Rivers considering geographical conditions and facilities required. The plant can get iron ore easily from the Noamundi, Gua, and Hoklatburu region lying within a distance of 100 km. Also, the coal required by the company is supplied from Jharia and Raniganj. Most of the raw materials are available within Sighbhu, region and hence the company is in a well-located place. The Rivers serve the demands of both clean water and sand.

  • The plant is connected to Kolkata port by rail network for carriage of goods. As part of their expansion plans, the Tata Group established 'Tata Engineering and Locomotive Company' in the year 1948.

  • Sakchi was given the name Jamshedpur in honor of Jamshedji, the founder of the company. Known as 'Tatanagar', this industrial city is famous all over the world for the production of railway wagons, boilers, trucks, and other vehicles.

Bokaro Steel Plant:

  • 1964: the company was established by the Government of India through the Steel Authority of India in collaboration with the Soviet Union.

  • 1972: production started.

  • It has a production capacity of 32 lakh tons. One of the sophisticated plants in the world, this is located near the Tenughat and Garga dams of the Damodar Valley. The plant gets cheap electricity from Damodar Power Project. 

  • All raw materials are conveniently supplied to the plant. The Kolkata-Delhi road is used conveniently for transportation and reaching port further down is quite easy.

Heavy Engineering Corporation (HEC):

  • 1958: The establishment of HEC in Jharkhand by the Government of India in collaboration with Russia & Czechoslovakia elevated the Indian industry to the pinnacle of its glory.
Three branches of this mega industrial unit are functional at a place named Hatia near Ranchi. They manufacture hundreds of equipment and machine tools for cement, edible oils, and other industries.
  • FFP (Foundry Forge Plant)= it uses high-temperature boilers for casting and forging iron to mold the same into required shapes for making heavy-duty machines and related equipment. This branch was set up with collaboration from Czechoslovakia.

  • HMBP (Heavy Machine Building Plant)= it was set up in collaboration with Russia. Its production capacity is 30 thousand tons of machinery every year. It produces equipment for the steel plant as well as cement, mining, edible oil plants. It also produces drilling machinery.

  • HMTP (Heavy Machine Tools Plant)= it was also set up in collaboration with Russia. This produces heavy machines and tools. Some 274 kinds of machine components are produced here. Bokaro Steel Plant gets requirements of machines and tools fulfilled from HPTP.
'Garden Reach Shipbuilders & Engineers Ltd', a Government of India undertaking, is also located within the premises of HEC. This produces diesel engines and engines for ships.

Chemical Industry:

  • 1951: the GoI through the Fertilizer Corporation of India (FCI) established a large fertilizer factory at Sindri in the Dhanbad district.

  • Equipped with state-of-the-art technology, this plant produces Ammonium Sulphate, Nitrate, and Urea on a large scale. Damodar Valley Project fulfills its electricity and water requirements. This plant has an annual production capacity of 20,000 tons of Urea, 3 lakh tons of Nitrate. This plant is facing a lot of problems currently and discussions are in progress to start steel production here. It's not unusual to have problems in the supply of raw materials in Jharkhand because of its geographical diversities. This plant is also facing similar difficulties.

Aluminium Industry:

  • Because of the abundant deposits of bauxite in the state, the aluminum industry is in an ideal situation here. The state has around 100 lakh tons of bauxite reserves and Lohardaga has most of the same.

  • 1938: a plant to produce aluminum was set up at Muri near Ranchi by the Indian Aluminium Company. This place is connected to the Lohardaga-Ranchi rail network. This convenient transportation facility makes it easy to ensure a regular supply of bauxite that is needed for producing aluminum.

  • This plant has a production capacity of 1.60 lakh tons. Birla group has bought this plant and its current name is Hindalco.

Copper Industry:

  • 1924: the first copper-producing plant of the country was set up by the GoI at Ghatshila in the state through 'Indian Copper Corporation' (ICC).

  • 1930: purification of copper started.

  • The process of purification is quite complex. The raw materials received from the mines in Mosabani and Bedia are first crushed and then transported to the plant through ropeways. After being transported over a 10-km long ropeway, the crushed material is heated in an electric furnace to separate sulfur from copper. This process produces copper with almost 10% purity.

Glass Industry:

  • It has always been flourishing in India. A factory is established at Bhurkunda in Ramgarh district in Jharkhand in the name of 'Indo Asahi Glass' (IAG) Limited. 

  • This industry uses a number of minerals as raw materials, including silica, limestone, lead, borax, molasses, potassium carbonate, sodium sulfate, etc. All these raw materials are made available to the factory from Mangal Ghat and Patthar Ghat regions in the hills of Rajmahal.

Cement Industry:

  • Its factories in Jharkhand are located at the places like Kumardubi, Sindri, Japla, Chaibasa, Bokaro, and Khelari. The production of 1 ton of cement requires almost 2 tons of raw materials that are available in the state in abundance.

  • An explosive-producing plant is located at Gomia in the Bokaro district of the state in the name of 'Indian Explosive Ltd'.

  • The refractory industry has plants located at places like Dhanbad, Jharia, Ramgarh, and Chirkunda. They use igneous rocks to produce bricks designed to withstand very high temperatures, which is used lining for blast furnaces in iron and steel factories. 

Other Industries:

The GoI has also set up the following large-scale plants here under central administration, located in the State, constitute the backbone of Indian Industry.
  • Bokaro Steel Ltd. Bokaro
  • Eastern Coalfields (ECL) Santhal Pargana
  • Central Coalfields (CCL) Ranchi
  • Bharat Coking Coal Ltd. (BBCL) Dhanbad
  • Heavy Engineering Corporation (HEC) Ranchi
  • Hindustan Copper Ltd. (HCL) East Singhbhum
  • Birla Group has two plants in Jharkhand: Hindalco- at Muri, which is connected with the Aluminum industry, the factory at Palamu, 'Bihar Caustic Soda & Chemicals' produces chemicals.

  • Usha Martin Group has 'Usha Martin Steel' at Ranchi and Singhbhum producing steel and 'Usha Beltron' at Ranchi manufacturing cables.

  • The ACC group, famous all over the country, has cement factories at Dhanbad and Singhbhum.

  • The private sector company 'Hyderbad Industries' in Deoghar produces asbestos and 'Indian Steel and Wire' in East Singhbhu, manufactures steel rods.

In view of the infinite possibilities of industrial development in Jharkhand, the State government has formulated a three-tiered plan. under the same, a network of mega, mini, and micro industries will be spread all over the state. The State government has initiated the major steps for resolving the issues being faced by large & medium scale industries. they include incentives schemes for the units running in loss and also schemes to welcome new enterprises with various grants and incentives. 
  • 12 districts of the state have functioning 'District Industries Centre' (DIC), which are being strengthened further with additional powers.

  • 'Growth Centre' has been set up in the State for the development of industrially backward districts. 

  • One of the steps by the state government specially focused on imports & exports is the establishment of the Inland Container Depot at Jamshedpur. 250 containers are sent out every month from this depot.

  • Under Special Economic Zone (SEZ) scheme, the state government has initiated steps towards a Single Window system and portal (, where all the departments related to industry shall be brought under one roof. It has been deployed by the Department of Industries for accelerated processing for issuance of no-objection certificate (NOC) and approvals from concerned department for investors. All necessary information shall be made available to the investors under this system, along with the facility for online submission of applications.

Jharkhand is the first state in the country to implement the digital signature system
At present, this is implemented in the 
  • Department of Commercial Taxes, 
  • Department of Labour, 
  • Industrial Area Development Authority,  and 
  • Jharkhand State Pollution Control Board. 

Four special policies have been formulated to accelerate industrial development in Jharkhand. They are as follows:
  • Jharkhand Food Processing Industry Policy, 2015
  • Jharkhand Feed Processing Industry Policy, 2015
  • Jharkhand Industrial Park Policy, 2015
  • Jharkhand Export Policy, 2015

In order to facilitate, investments under all the industrial are development authorities in the State, the state government has passed 4 regulations for time-bound and transparent disposal of proposals for land allotment through online systems:
  • Adityapur Industrial Area Development Authority Regulation, 2015
  • Bokaro Industrial Area Development Authority Regulation, 2015
  • Ranchi Industrial Area Development Authority Regulation, 2015
  • Santhal Parganas Industrial Area Development Authority Regulation, 2015.

Jharkhand has imbibed with the thought of Mahatma Gandhi "If we have to achieve economic freedom, every hand must start working". The State government is committed to facilitating self-employment for poor citizens of the state-linked with 
  • Weaving traditional handicrafts and silk production. To achieve the same, the weavers and artisans are being provided high-quality training. A Craft & Design Institute (CDI) is being set up at Ranchi in collaboration with NID, Ahmedabad. To promote handloom, technical and financial assistance have been provided handloom industry resulting in improvement in its economic condition. A scheme has been approved and funds allotted for training in Computer-Aided Design with the help of C-DAC at five places- Ranchi, Hazaribagh, Latehar, Deoghar, and Saraikela-Kharsawan in the state.

  • Jharkhand State Khadi & Village Industries Board is not only playing an excellent role in the development and expansion of Khadi in the state but is also promoting self-employment at the village level. A modern readymade garment unit was inaugurated at Jhumri Tilaiya, Koderma on 4th October 2015, and a Khadi Bhavan and training-cum-production center was inaugurated at Modinagar (Palamu) on 5th December 2015. The national Khadi & Saras Festival was organized at Ranchi in February 2016 under the joint auspices of the State Khadi Board, the Khadi Commission, and the Department of Rural Development.

  • Silk Park is being established to facilitate the production of the latest silk apparel in the state itself and the generation of employment opportunities and augmentation in the income of the people connected with silk production of high-quality silk products in the state. Jharkhand enjoys the first rank in the production of Tassar Silk in the country. Currently, the silk farmers are able to earn income between Rs. 40,000 to Rs. 50,000/- from every harvest. The establishment of the Silk Production Chain in the state has eliminated dependence on the other institute for nuclear seeds, primary seeds, and commercial seeds in the state, and even other states were supplied commercial seeds.

  • JHARCRAFT has been used to provide a platform for marketing handicrafts and handloom products. Jharkhand is a state replete with handicraft art. High-quality training is being imparted with the help of JHARCAFT and departmental handicraft centers across the state to develop traditional handicraft items like Katha, applique, dhokra, terracotta, etc. Approval has been accorded for the establishment of 'Jharkhand Insitute of Craft & Design' at Ranchi with the assistance of NID, Ahmedabad.   

  • Skill development training is being provided to promote self-employment in the state. MSME Tool Room, Ranchi, and Government Tool Room, Dumka are imparting skill development training in various industrial trades to ensure the availability of skilled industrial workers in the state. Also, 100% of the trainees under 4-year diploma courses of the two Tool Rooms are bale to secure employment.

  • The establishment of an electronic manufacturing cluster at Adityapur and an integrated manufacturing center in the form of a growth center at Barhi are also planned. Also in the process is the development of the 'Ranchi-Patratu-Ramgarh Industrial Corridor' that will not only help improve industrial activities but also create new opportunities for capital investments. The Project Report for the 'Industrial Corridor' has been prepared by 'JINFRA'. The GoI has ambitious plans for the development of the 'Eastern Dedicated Freight Corridor' as well as 'Amritsar-Delhi-Kolkata Industrial Corridor'. 196 km of this corridor passes through Jharkhand state. An integrated manufacturing cluster at Barhi has been identified near this only. The state is in the process of implementing its 'Modified Industrial Infrastructure Upgradation Scheme' (MIIUS) with the aim of helping the industrial units of the state to remain competitive on a global level. Under this, the industrial units shall be provided common facilities like Zero Liquid Discharge Effluent Treatment Plants and other basic infrastructure facilities.

Establishment of Industrial Parks:

There is a proposal to set up 'Private Industrial Parks' and 'Industrial Parks under PPP mode' to promote private partnership in industrialization under the following parks are to be set up under the same.
  • Jharkhand Industrial Park Policy, 2015
  • Textile/Apparel Park
  • ITes Park
  • Biotechnology Park
  • Gems & Jewellery Park
  • Herbs Park and Chemical & Pharmaceuticals Parks.


  • JIDCO = Jharkhand Industrial Infrastructure Development Corporation.
  • JIIDCO has been constituted for the purpose of building industrial infrastructure in the state. JIIDCO has a share capital of Rs. 50 crores. JIIDCO is going to play an important role in industrial development in the state.
  • The project for the Jagdishpur-Haldia gas pipeline will be taken up under joint auspices of JIIDCO and GAIL.


Jharkhand is a land-locked state. Hence, the industrialists and businessmen here have to not only face a lot of difficulties in exporting their products but also incur excessive costs. The Department of Industries is setting up an airport cargo complex at Ranchi. An agreement has been signed with the Airports Authority of India (AAI) in this regard and Jharkhand Export Policy, 2015 has been notified to promote exports.

All these endeavors have created an atmosphere for industrial development that will pave the way for the state to become industrially thriving and get counted along with developed states of the country in the near future.



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