The heavy and basic industries are mainly localised near the source of raw materials. They are established in the area surrounding the raw material to minimise the transport cost. The sugar industries are located near the raw material sugarcane as it is a perishable product and delays in transport affect the production. Coal, petroleum and hydro-electricity are the chief sources of power. The heavy industries need power in abundance. These industries are generally localised near the areas where power is easily available. The iron and steel industry, fertiliser, aluminium and copper smelting are power intensive industries, and hence located near the sources of power.