JFE Steel and JSW Steel have formed a joint venture to operate Bhushan Power & Steel Limited (BPSL), marking a
significant overseas investment in India's steel sector. JFE will invest ₹15,750 crore for a 50% stake in JSW Kalinga
Steel, aiming to boost BPSL's capacity to 10 million tonnes by 2030 and meet India's growing steel demand with
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Japan's JFE Steel Corporation and JSW Steel Limited on Wednesday announced a joint venture to jointly operate the steel
business of Bhushan Power & Steel Limited (BPSL), marking one of the largest overseas investments in India’s steel
The agreement, signed on December 3, 2025, involves JFE investing ₹15,750 crore for a 50% stake in JSW Kalinga Steel,
following regulatory approvals.
The largest ever acquisition by JSW Steel, Bhushan Power, was bought for ₹19,700 crore in 2019 through the Insolvency
and Bankruptcy Code. Since it became a subsidiary in October 2021, JSW Steel has invested close to ₹3,500-₹4,500 crore
as capital expenditure for growth and maintenance of Bhushan Steel.
JSW Steel shares were trading at Rs 1134.75 apiece on the BSE, down 2.3% on Wednesday as of 2.52 PM.
BPSL operates an integrated steel plant and an iron ore mine in Odisha with an annual crude steel capacity of 4.5
million tonnes. The joint venture plans to increase capacity to 10 million tonnes by 2030, with scope to scale further
to 15 million tonnes, positioning the asset among the largest in the country.
The companies expect the partnership to meet India’s growing steel demand while targeting higher production of
value-added steel. It is to be noted that JFE Steel also held a 15% stake in JSW Steel at the end of the September
In a statement, JFE Steel President and CEO Masayuki Hirose said that the company has engaged in various collaborations
and partnerships since it entered in a comprehensive alliance agreement with JSW in 2009.
"...we have engaged including capital participation; licensing of manufacturing technology for automotive steel and
non-oriented electrical steel sheets; and a joint venture for the manufacturing of grain-oriented electrical steel
sheet. Our relationship is now entering a new phase. I am confident that by leveraging our technological strengths and
jointly operating an integrated steel plant in India with JSW, we will not only contribute to the further growth of both
companies but also make a significant contribution to the development of the Indian steel industry,” Hirose said.
JSW Steel Joint Managing Director and CEO Jayant Acharya said the partnership reinforces the company’s long-term
expansion strategy. “Today’s announcement brings together JSW’s expertise in India with JFE’s technological strengths,
and will enable the joint venture to realise its growth potential and produce a variety of value-added steels. India is
the fastest growing major economy as well as steel market in the world, and this transaction enables JSW to accelerate
its growth in a financially prudent manner, and create further value for its stakeholders.”
As part of the agreement, the BPSL steel business will be transferred via slump sale to JSW Sambalpur Steel Limited for
₹24,483 crore. The transaction is subject to approvals from regulators including the Competition Commission of India.
JSW Steel said the deal aligns with its target of reaching 50 million tonnes per annum steelmaking capacity by FY31. The
company noted that the joint venture structure will support growth while maintaining financial discipline and enable
long-term participation in India’s steel expansion cycle.
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