The Sajjan Jindal-led JSW Group may offload a 50 per cent stake in Bhushan Power and Steel Ltd to its long-standing partner JFE Steel of Japan in a deal that may value BPSL at ₹30,000 crore.
Talks are on between two entities for months and a formal announcement may come by December, sources familiar with the negotiations, said.
The transaction, when it materialises, can benefit both parties — JSW Steel will be able to garner close to ₹15,000 crore from the stake sale which will embellish the steel major with financial firepower to comfortably chart the plan to reach 50 million tonne capacity in India.
For JFE, the deal will allow the Japanese major to play a more active role in India, the world’s most promising steel market for years to come. BPSL operates an integrated steel plant in Odisha with a 4.5 mt capacity.
If JFE comes as an equal partner, there is a possibility the unit will be scaled up to 10 mt, apart from securing the latest technologies.
When reached for comments, a JSW spokesperson said: “JSW Steel’s strategy includes evaluating various opportunities, both organic and inorganic, in India and overseas — including potential collaborations aimed at enhancing scale, efficiency and global competitiveness. However, we would not like to comment on speculation.”
JFE Steel could not be reached for comments.
Long-standing relation
JFE Steel has been a shareholder in JSW Steel Ltd from 2010, having invested ₹4,800 crore for a 15 per cent stake in 2010. The Japanese steel maker remains a public shareholder in India’s largest steelmaker with a board seat.
In the last one year, the two companies have taken their relations to a greater height through joint investments in the electrical steel segment.
In October 2024, JSW Steel announced that it would acquire a 100 per cent stake in thyssenkrupp Electrical Steel India Private Limited (tkES India) in partnership with Japan’s JFE Steel Corporation for ₹4,051 crore.
Moreover, JSW Steel and JFE Steel Corporation announced expansion of its manufacturing capacity for grain-oriented electrical steel at a cost of ₹5,845 crore in August this year.
Chequered past
BPSL, which has a downstream unit near Calcutta, was one of the 12 financially stressed companies which were sent for insolvency proceedings by the Reserve Bank of India. After a protracted litigation JSW Steel acquired the company for ₹19,700 crore in 2021. Apart from the Jindals, Tata Steel and Liberty Steel of UK had shown interest in the company.
However, in an unexpected turn of events, the Supreme Court declared JSW’s resolution plan for BPSL ‘illegal’ and ordered the latter’s liquidation in May. The matter was challenged by JSW Steel through a review petition, while the lenders and the resolution professional also joined in.
In a judgment dated September 26, 2025, the apex court upheld the National Company Law Appellate Tribunal order of 2020, approving JSW Steel’s resolution plan for BPSL, dismissing the appeals filed by the erstwhile promoters and certain operational creditors.
Sources said the negotiations between JFE and JSW were stalled because of the proceedings at the Supreme Court but it gained momentum after the September reprieve. Incidentally, this is the second international partnership JSW is exploring. The company is also planning to build a 6 mt steel plant with Korea’s Posco.