JSW Steel Limited has approved a major strategic partnership with Japan’s JFE Steel Corporation, forming a 50:50 joint venture to operate the steel business of Bhushan Power and Steel Limited (BPSL). The decision was cleared at the company’s board meeting held on December 3, 2025.
Under the approved structure, the entire BPSL steel business will be transferred to JSW Sambalpur Steel Limited through a slump sale valued at Rs 24,483 crore, subject to customary adjustments. JSW Sambalpur is currently a wholly owned subsidiary of JSW Kalinga Steel Limited. After the transaction, JFE Steel will acquire 50% equity in JSW Kalinga, investing Rs 15,750 crore in two equal tranches. This will make JSW Kalinga the joint venture company holding BPSL’s steel operations.
BPSL, acquired through the IBC route in 2021, has already seen a turnaround—with crude steel capacity expanded from 2.75 MTPA to 4.5 MTPA. JSW Steel stated that the new joint venture aims to accelerate capacity expansion using JFE’s advanced technology, enabling production of high-end, value-added steel products.
The proposed transaction will require approvals from shareholders and regulatory bodies including the Competition Commission of India (CCI). JSW Steel clarified that there will be no change in its own shareholding pattern as a result of this deal.
As part of India’s multi-decadal steel demand expansion, JSW Steel reiterated its long-term target of building 50 MTPA steelmaking capacity by FY2031, calling this JV an important step toward financially prudent, technology-enhanced growth.
