JSW Steel and JFE Corporation Announce JV to Operate Business of Bhushan Power
JSW Steel and Japan’s JFE Steel Corporation have unveiled a significant partnership that marks a new milestone in their long-standing relationship. The two steelmakers will form a 50:50 joint venture to operate the business of Bhushan Power and Steel Ltd. (BPSL), which will now function under a new name—JSW Kalinga. This move strengthens a collaboration that began in 2009 and has steadily expanded over the years.
Earlier in September 2025, the Hon’ble Supreme Court ruled in favour of JSW Steel by upholding the original 2017, Rs. 19,700 crore resolution plan for Bhushan Steel.
JSW Kalinga’s Investment Structure and Transition Plan
As part of the agreement, JFE will invest Rs 15,750 crore in the joint venture, with the amount to be paid in two equal instalments. Bhushan Power and Steel Ltd.’s steel business will be fully transferred to JSW Kalinga through a slump sale valued at Rs 24,483 crore.
The entire transition process is expected to be completed within six to nine months, after which JSW Steel and JFE will each hold a 50% stake and jointly oversee the company’s operations.
Bhushan Power and Steel’s Turnaround Under JSW Steel
JSW Steel originally acquired BPSL in 2021 through the Insolvency and Bankruptcy Code process, when the company was facing financial distress and low production levels. Since the takeover, JSW has engineered a strong turnaround with Production capacity increased from 2.75 Million Metric Tonne Per Annum (MMTPA) to 4.5 MMTPA.
JSW remains committed to its long-term goal of raising its steelmaking capacity in India to 50 MMTPA by FY 2031, where the company’s current capacity is 35.7 MMTPA. To reach this targeted capacity, the company is making several developments with 10 MTPA green steel plant in Raigad, Maharashtra and 6 MTPA integrated plant in Odisha via a JV with South Korea’s POSCO.
This partnership is poised to deliver mutual benefits. JSW gains financial flexibility and a technologically strong collaborator, while JFE strengthens its presence in one of the world’s fastest-growing steel markets.
Together, JSW and JFE aim to create a high-performing steel business that will contribute significantly to India’s industrial growth and deliver long-term value to stakeholders.
About JSW Steel: JSW Steel Ltd. is the flagship company of the JSW Group. The company has manufacturing facilities in India and the US. In Q2 FY-26, the company reported a consolidated top line of Rs. 45,152 crore and a profit of Rs. 1,646 crore.
