The case focuses on the problem of location of sponge iron plants in India. Sponge iron being a virgin industry, planners face a real problem in licensing such plants, keeping in view the growth of the industry over the next fifteen to twenty years. The case presents such issues as location, selection of technology, time planning, selection of capacity, and distribution of raw materials and the end?product. The case also raises various related problems and discussion of criteria for making these decisions.