JSW Steel has approved a strategic 50:50 joint venture with JFE Steel Corporation, Japan, for the business undertaking of Bhushan Power and Steel Limited (BPSL). JFE will acquire 50% equity stake in JSW Kalinga at an aggregate consideration of ₹15,750 crores. The transaction aims to enhance steel-making capacity to 50 MTPA by FY2031.
Strategic Partnership with JFE Steel
JSW Steel Limited has partnered with JFE Steel Corporation to jointly manage the business operations of Bhushan Power and Steel Limited (BPSL). The decision, approved on December 3, 2025, will see both companies sharing operational responsibilities. BPSL was initially acquired in 2021 through the Insolvency and Bankruptcy Code (IBC) process, subsequently increasing its crude steel capacity from 2.75 MTPA to 4.5 MTPA.
Key Elements of the Joint Venture
The implementation of this joint venture will involve several key steps:
- Transfer of BPSL Steel business to JSW Sambalpur Steel Limited for a cash consideration of ₹24,483 crores.
- JFE will acquire a 50% equity stake in JSW Kalinga, investing ₹15,750 crores in two equal tranches.
Upon completion, JSW Kalinga will be jointly held by JSW Steel and JFE.
Details of Involved Entities
JSW Sambalpur will be 100% held by JSW Kalinga Steel Limited. JSW Kalinga is currently a wholly-owned subsidiary of Piombino Steel Limited, which is owned 82.65% by JSW Steel and 17.35% by JSW Shipping & Logistics Private Limited.
Future Objectives
This initiative supports JSW’s objective of achieving a steel-making capacity of 50 MTPA in India by FY2031, aiming to secure growth and business aspirations.
Agreement Terms
JSW Steel and JFE will jointly manage JSW Kalinga Steel Limited. JFE and JSW Steel will appoint two directors each in JSW Kalinga and three directors each in JSW Sambalpur.
Financial Details
The steel business of BPSL for FY2024-25 has revenue from operations of ₹21,440 crores and total assets of ₹23,735 crores.
Source: BSE
