📈 EconomyUPSC 2002Fundamentals of Economy

HINDALCO, an aluminium factory located at Renukut owes its site basically to:

aproximity of raw materials
babundant supply of power
cefficient transport network
dproximity to the market
✓ Correct answer: b) abundant supply of power
ExplanationWeber’s theory of industrial location emphasizes minimizing transportation and production costs as key fac- tors in determining where industries should be located.In- dustries tend to locate near raw materials (if they are heavy and bulky), energy sources, and markets to reduce transportation costs.Labour availability and cheap energy also influence loca- tion choices.The theory also highlights agglomeration, where in- dustries benefit from clustering together to share infrastructure and resources, improving efficiency and reducing costs.Option (b) is correct : The HINDALCO aluminum factory at Re- nukut, Uttar Pradesh, is primarily located due to the abundant supply of power from the Rihand Dam hydroelectric project.Aluminum production is highly energy-intensive, making prox- imity to reliable power sources a critical factor.94

Practice more Economy PYQs

Attempt a free 10-question quiz or browse the full Economy previous-year-question bank with instant answers and explanations.

📈 Economy PYQs →