Factors affecting selection of site for new industry/plant: 1. Availability of raw material: As far as possible the site selected should be near the source of raw materials so that cost of transportation can be minimized and storing cost can be reduced especially when the raw material is heavy and bulky or cheap but looses a good amount of weight during processing. For example most of the iron and steel industries are situated in Orissa and Bihar, Paper industries in Ballarpur due to availability of raw material in these areas. 2. Availability of labour: Available of right kind of labour in required numbers of reasonable rates is also deciding factor in site selection. Unskilled labours are amply available at major industrial areas and rural areas but however firms requiring skilled labour be situated near the urban industrial area. 3. Climatic condition: Climatic conditions largely affect certain production processes and also the efficiency of employees. For example textile industries required moist climate due to which these types of industries are situated near Ahmadabad and Mumbai; similarly Tea and Coffee near Assam. 4. Proximity of market: Market is another important factor affecting site selection. Industrial units using raw material should be located near the markets to serve the customer with minimum service cost. 5. Transport and communication facilities: While selecting the site, adequate transportation facilities should be considered. The optimum site is the site which is well connected by various modes of transportation. 6. Availability of water: Water is required for drinking and sanitary purpose of all industries. Therefore, clean and adequate water should be available near the site. 7. Availability of power and fuel: All industries require power and fuel to run the prime movers. Therefore, the site selected should have these facilities available at cheaper rate. 8. Legal Aspects: Local bye laws, taxes etc. are also important because they directly reflect in total cost. So while selection, it should also consider legal aspects. 9. Amenities and recreational facilities: Facilities like schools, hospitals, garden, and play grounds should also be needed for employee and their family. 10. Scope of Future expansion: Site selected should be in such a way that a plenty of land other facilities must be available for future expansion.