Japanese steel major JFE Steel is investing ₹15,750 crore to acquire a 50% stake in a new joint venture with JSW Steel, focused on running the Bhushan Power & Steel Ltd. (BPSL) business. The deal marks a significant step for both companies in strengthening India’s steel sector while unlocking growth potential for JSW.
Under the agreement, BPSL’s integrated steel plant in Odisha, along with its associated iron‑ore mine, will be transferred to the JV through a “slump sale.” The total valuation of these assets is estimated at around ₹24,483 crore, with JFE’s investment planned in two tranches.
JSW Steel acquired BPSL in 2021 when the company was distressed. Since then, the plant’s crude steel capacity has expanded from 2.75 million tonnes per year to 4.5 million tonnes, supporting roughly 25,000 jobs. With the new JV, the aim is to further increase production to 10 million tonnes per year by 2030, combining JSW’s operational expertise with JFE’s technical strengths in steelmaking.
For JSW, the partnership is also strategically important. The cash inflow and the transfer of debt will help de-leverage its balance sheet, providing financial flexibility for future growth while sharing risk with a global partner. Analysts view the move as a smart way to unlock value and strengthen JSW’s position in the market.
The collaboration builds on a long-standing alliance between JSW and JFE that began in 2009. As India’s steel demand grows, the partnership positions both companies to capitalize on opportunities while ensuring the BPSL plant achieves its full potential.
In the coming months, attention will be on the completion of the asset transfer and the gradual ramp-up of production at BPSL. The JV is expected to play a key role in shaping the future of steel manufacturing in India, balancing expansion with financial prudence and long-term strategic growth.
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