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Question
Mention three advantages that a mini steel plant has over an integrated steel plant.
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Solution
Advantages of Mini Steel Plants:
- Lower Capital Investment: Mini steel plants require much less capital to set up and operate compared to large integrated steel plants
- Use of Electric Furnaces: They use electric arc or induction furnaces, which reduces dependence on scarce coking coal, making them more energy-efficient.
- Reduced Transport Costs: Being located near industrial towns and consumption centers reduces transportation costs for raw materials and finished goods.
- Eco-friendly Operations: These plants cause less pollution and are more environment-friendly than large-scale integrated plants.
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