Sakchi was chosen to set up the steel industry because of the following reasons:
(a) This place was 32 km away from Kalimati station on the Bengal - Nagpur railway line.
(b) This was close to the iron ore, coal and manganese deposits as well as to Kolkata, which provided a large market.
(c) TISCO gets it's coal from Jharia coalfields and iron ore, limestone, dolomite and manganese from Orissa and Chhattisgarh.
(d) The Kharkai and Subernarekha river ensured sufficient supply. Government initiatives provided adequate capital for its later development.