History · Economic Policies of Post-Independence India
What was the historical impact of the 'Freight Equalization Policy' (1952) on the industrial development of the Jharkhand region compared to coastal states?
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- 1It provided a direct subsidy to the Bihar/Jharkhand government for every ton of iron ore exported to foreign nations.
- 2By equalising mineral prices nationwide, the policy stripped Jharkhand of its locational advantage, causing regional stagnation while coastal hubs flourished.✓
- 3It mandated that all heavy industries must be located within 100 kilometers of the mines to save on transportation costs.
- 4It gave Jharkhand a competitive edge by making its high-grade coal and iron ore available at 50% cheaper rates within the state.
Correct answer
By equalising mineral prices nationwide, the policy stripped Jharkhand of its locational advantage, causing regional stagnation while coastal hubs flourished.
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