Second Five-Year Plan (1956-61)

Great emphasis was laid on the establishment of heavy industries during the Second Five-Year Plan. The second industrial policy was announced in 1956. The main thrust of industrial development was on iron and steel, heavy engineering, lignite projects, and fertiliser industries. Moreover, there was emphasis on the expansion of existing steel plants, like Jamshedpur, Kulti-Burnpur, and Bhadravati. Three new iron and steel plants were located al Bhilai, Durgapur, and Raurkela. The Chittranjan Locomotive Workshop, the Hindustan Ship-building Yard (Vishakhapatnam), the Sindri Fertiliser Factory, and Hindustan Machine Tools Ltd. (HMT) at Bangalore were expanded. Many of the targets, however, could not be achieved because of the war with China in 1962 and the failure of monsoon over greater parts of the country.