An integrated steel plant handles multiple activities within one complex from raw materials to steel making, rolling, shaping among others which makes these steel plants to be huge in size. A mini steel plant is smaller as it produces mild and alloy steel of given requirements. Problems faced by this industry are:
(i) The production costs are high due to high costs of basic materials such as coke coal.
(ii) In India, there is an irregular supply of electricity leading to the loss of time and added cost of generating electricity.
(iii) Steel Industries are located in regions with poor infrastructure, which increases cost of transportation and other utilities. Recent developments that have led to a rise in the production capacity of this industry is the entry of private players, which have access to private capital investments and foreign direct investments. FDI has allowed quicker expansion and increased efficiency through oversight.