JSW Steel plans to sell part of its stake in Bhushan Power and Steel to a foreign partner to raise funds for expansion.
The move follows the Supreme Court’s reversal of its earlier order to liquidate the bankrupt firm, which JSW had acquired in 2019.
The apex court allowed JSW to proceed with the takeover, overturning its May decision that had rejected the ₹19,700 crore resolution plan.
Naveen Jindal-led JSW Steel is reportedly planning to sell part of its holding in Bhushan Power and Steel to one of its foreign partners to raise funds for further expansion. The plan follows the Supreme Court’s decision to reverse its earlier order to liquidate the formerly bankrupt firm, which JSW Steel had acquired in 2019 through insolvency proceedings.
The delayed insolvency process had earlier led the apex court to reject the ₹19,700 crore resolution plan in May this year, calling it “ill-motivated.” However, in August, a bench comprising Chief Justice B. R. Gavai and Justices Satish Chandra Sharma and K. Vinod Chandran set aside that order, allowing JSW to proceed with the takeover.
31 October 2025
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According to a report by The Economic Times (ET), JSW Steel now plans to sell about a 50% stake in Bhushan Power and Steel Pvt Ltd (BPSL) to Japanese steelmaker JFE Steel Corp. The Japanese firm already holds a 15% stake in JSW Steel.
The report, citing sources, said the 50% stake is expected to be valued at around ₹15,000–16,000 crore, with the transaction likely to be completed by December. The deal, in discussion for over a year, had been temporarily halted following the Supreme Court’s ruling in the Bhushan Power case.
JSW Steel plans to utilise the investment from JFE to expand capacity and upgrade technology at Bhushan Power. Since acquiring the company as a subsidiary in October 2021, JSW Steel has invested nearly ₹3,500–₹4,500 crore in capital expenditure for its growth and maintenance.
The plant’s capacity has already risen to 4.5 million tonnes from 2.75 million tonnes at the time of acquisition, with a further expansion to 5 million tonnes targeted by September 2027 through debottlenecking.
Bhushan Power holds strategic significance for JSW due to its location in Jharsuguda, Odisha—an area where JSW currently has limited presence. The eastern steel market is dominated by SAIL and Tata Steel. The company aims to achieve 50 million tonnes of domestic production capacity by 2030–31, with Bhushan Power expected to contribute up to 10 million tonnes, accounting for one-fifth of that target.
In response to queries, a JSW Steel spokesperson told the newspaper that the company continues to evaluate both organic and inorganic growth opportunities in India and abroad, including partnerships to enhance scale, efficiency, and global competitiveness, but declined to comment on the stake sale.
Following the report, JSW Steel shares were trading down 0.92% at ₹1,181 on the BSE at 11:50 AM.
