Factors considered for the selection of a site

           FACTORS CONSIDERED FOR THE                                                 SELECTION OF A SITE 

      The following factors are considered while selecting a site for a plant

1.Nearness to Raw materials

       If raw materials is bulky and heavy,the transportation charges will be high.so it is always better to locate the plant near the source of raw material.

    Example:

        Cement factory, sugar factory, iron and steel mills ,brick making factory.

        Similarly fish and fruit processing industries are located near the source of raw material. These are perishable materials.

2. Land 

         Topography, available area ,cost , drainage and other facilities, probability of flood, earth quakes etc, influences the selection of site.

3. Transport facilities

          Normally, heavy amount is spent for transporting raw material and finished good. Depending upon the type and size of raw material and finished good ,a suitable method of transport is selected.(road,rail,water or air) Accordingly the plant location is selected.

           Products that are mainly exported should be produced near a port or airport.

4. Availability of labour

          Required number of labour must be available near the plant. They must be stable and have right attitude towards work.The labour cost should be reasonable.

5. Availability of fuel and power

          It is essential that continues electric power is available in proper quantity at reasonable rates.Normally ,steel industries are located near coal fields to cut down the fuel transportation cost.

6. Availability of water

           Industries require water for drinking band sanitary purposes . Some factories need watervin large quantities for their production process.

       Example: 

            Leather industry ,chemical industry ,chemical industry, paper industry industry and thermal power plant .so these plants should be located where quantity of water supply is available like receivers,lakes etc.

7. Water Disposal

         Some industries bloke paper industry,leather industry .distilaries, chemical plant etc. Give out  a large quantity of waste .These wastes are harmful to the environment.so they must be disposed off effectively after waste treatment .so it is necessary to locate the plant away from the place where people live.

8. Financial aids and Government concessions

       Both central and state government give concessions for starting industry in backward area . These concessions are 

    1. Tax exemption

    2. Site and building at low cost 

    3. Reduced Electric charges

    4. Subsidaries

        So to avail these concessions, plant can be located in backward areas.

 9. Other factors

     1. Political band social environment.

     2. Housing facilities

     3. Security

     4. Recreational facilities

     5. Local bye - lawa,taxes,Acts etc.

     6. Facilities for expansion.

     7. Presence of supporting industry and services nearby.

     8. Availability of hospital , school , marketing centes, bank, post office etc.