JSW Steel has formally announced the creation of a 50:50 joint venture with Japan’s JFE Steel, under which the entire steel-business undertaking of its subsidiary BPSL will be transferred into the new entity. According to JSW’s exchange filing, the transaction is structured as a slump sale of BPSL’s integrated steel operations, valued at approximately ₹24,483 crore.

Key Highlights

• JSW Steel and JFE Steel form a joint venture to acquire and expand Bhushan Power’s operations.
• JFE will invest ₹15,750 crore, targeting increased capacity and advanced technology integration by 2030.

Under the agreement, JFE will invest ₹15,750 crore in two tranches into the joint venture for its 50% equity stake. The JV aims to rapidly scale up the plant’s annual crude-steel production capacity to 10 million tonnes by 2030.

The move underscores JSW Steel’s shift toward monetising its subsidiary BPSL for strategic growth, while bringing in JFE’s technological and process expertise to accelerate expansion. Notably, JSW acquired BPSL via the insolvency resolution process, and has since turned the business around from a distressed asset to a growing operation.

Analysts view the partnership as highly strategic: it enables JSW to bring in substantial fresh capital, de-risk its balance sheet, and pursue aggressive capacity expansion, while allowing JFE to establish a stronger foothold in India’s booming steel market. The deal also leverages the long-standing relationship between JSW and JFE (JFE has held an equity stake in JSW for years) and represents one of the largest foreign direct investments in India’s steel sector.

Also Read: SBI Backs JSW One Platforms with Rs 575 Cr to Boost B2B Growth

The timing is significant: India’s steel demand is being driven by infrastructure, manufacturing growth and policy support. By partnering with JFE, JSW is positioning BPSL for accelerated growth, new product development (including value-added steels), and improved technological sophistication — key differentiators in a competitive global steel environment. The joint venture, therefore, is both a capacity expansion play and a technology upgrade exercise.

In summary, the JSW–JFE JV for BPSL marks a major milestone in India’s steel industry: a large-scale infusion of capital, a boost in production target to 10 Mt by 2030, and combined technological collaboration targeting global competitiveness and stronger domestic footprint.