Neelachal IspatNigam Ltd. (NINL), a state-owned enterprise in India, is a large steel-making pig iron producer. At present, the company is in a "raw material crisis".

After the Indian Metals and Minerals Trading Corporation (MMTC) stopped supplying NINL with iron ore raw materials, NINL is trying to outsource iron ore for factory production. According to the agreement, MMTC purchases iron ore from the market, supplies NINL's steel plant in Orissa State, and sells NINL's finished products. For all transactions, MMTC is entitled to a 3% commission.

The reasons for MMTC's breach of the agreement remain unclear; however, the governments of MMTC and Orissa have announced the sale of shares in the NINL plant, claiming that the plant is in a loss phase. MMTC is the largest shareholder of NINL, with a 49.9% stake and a 26% stake in the government of Orissa.

A government official said that NINL is a large state-owned enterprise. Losses have been accumulating over the past few years. It is not wise to continue investing in NINL.

As NINL is a large steel-making pig iron producer in India with an annual output of 800,000 tons, the shutdown of its plant will affect the scrap market. NINL needs to raise 1.7 billion rupees ($25 million) to turn things around