JSW Steel Ltd. and Japan’s JFE Steel have agreed to form a 50:50 joint venture, under which JFE Steel will invest INR 157.5 bln (USD 1.75 bln) to acquire and operate Bhushan Power & Steel Limited’s (BPSL) integrated steel facility in Odisha. The JV will take effect after obtaining required regulatory approvals, the companies said.
BPSL operates an integrated steel plant and an iron ore mine in eastern India, with a crude steel capacity of 4.5 mln tons per year. Its product portfolio includes hot-rolled and cold-rolled coils and sheets, bars, wire rods, and pipes, serving customers mainly in eastern and northern India.
To meet India’s rising steel demand, the JV plans to expand crude steel capacity at the Odisha plant to 10 mln tons by 2030, supported by available land for further expansion. Long-term plans also include increasing capacity up to 15 mln tons, positioning the site among India’s largest integrated steel complexes.
JSW acquired BPSL in 2021 via the IBC process as part of its strategy to reach 50 mln tons per year of crude steel capacity in India by FY 2031. JFE Steel said operating an existing integrated facility will enable the JV to quickly capture domestic demand and accelerate profitability. By combining JFE’s technological expertise with JSW’s operational strengths, the partners aim to scale high-value steel production and improve productivity.
JSW Steel’s total consolidated crude steel capacity currently stands at 35.7 mln tons per year, including 1.5 mln tons in the U.S., with plans to reach 43.4 mln tons within three years.
1 USD / 89.8 INR
