JSW Steel said its 10Mt/y facility in Karnataka may come to a complete closure due to an acute shortage of iron ore.
The company also resorted to a massive production cut of 70% in the Vijayanagar plant in Karnataka due to shortage of iron ore after the Supreme Court imposed a ban on mining in the state.
"We may have to shut entirely (Vijayanagar plant)... There is a good possibility of that (closure) if the situation does not improve," JSW Vice Chairman and MD Sajjan Jindal said.
An e-auction route for supply of the raw material in Karnataka was put in place by the Supreme Court in September.
JSW is also looking to revise its production forecast downwards for the current fiscal due to continuous shortage of the iron ore.
The company requires about 1.65kt of iron ore to produce 1kt of steel, Jinal said, although he did not give the details of revised production forecast.