JSW Steel and Japan’s JFE Steel Form 50:50 Joint Venture for Bhushan Power & Steel Business

JSW Steel Limited has announced a strategic 50:50 joint venture with Japan’s JFE Steel Corporation to operate the steel business of Bhushan Power & Steel Limited (BPSL), marking one of the most significant partnerships in India’s steel sector in recent years.

Under the agreement, JSW Steel will transfer the steel business of its subsidiary BPSL into a newly formed entity, in which JFE Steel will acquire a 50 per cent stake through an investment of approximately ₹15,750 crore (about $1.7 billion) in two tranches. The transaction remains subject to approvals from shareholders, regulators, and the Competition Commission of India.

The joint venture will include the integrated steel plant located in Odisha, currently owned by BPSL, and aims to leverage JSW Steel’s strong operational presence in the Indian market with JFE Steel’s advanced technological expertise.Industry analysts have noted that the deal is expected to help JSW Steel unlock value from the BPSL assets and reduce its debt levels, strengthening the company’s financial position.

The partnership also underscores the long-standing relationship between the two steelmakers, which dates back to earlier collaborations, and signals growing foreign investment interest in India’s steel manufacturing capabilities.

By combining local scale with international technology, the JV is positioned to enhance production capacity, expand the range of value-added steel products, and contribute to meeting India’s rising steel demand driven by infrastructure and industrial growth.