JFE to Invest ₹15,750 Cr in JSW JV to Raise Steel Outputs

• JFE Steel and JSW Steel form JV to run Bhushan Power, with JFE investing ₹15,750 crore
• BPSL’s capacity to rise from 4.5 MT to 10–15 MT by 2030
• Deal supports JSW’s FY31 goal of 50 MT capacity and growth in value-added steel

Recently, Japan's JFE Steel Corporation and India's JSW Steel Limited announced a historic joint venture for the steel operations of Bhushan Power & Steel Limited (BPSL). This is one of the largest foreign direct investments in India's steel industry.

The joint venture agreement was signed on December 3, 2025. JFE will invest ₹15,750 crore in the JSW Kalinga Steel joint venture for 50% of the equity of JSW Kalinga Steel, subject to regulatory approvals. 

This will be JSW Steel’s largest acquisition to date. In 2019, JSW Steel, through the IBC, purchased Bhushan Power for ₹19,700 crore. Since Bhushan Power became a subsidiary of JSW Steel in October 2021, JSW Steel has made capital expenditures of approximately ₹3,500-4,500 crore to expand and maintain its facilities. As of 2:52 PM on Wednesday, JSW Steel was trading at ₹1,134.75 per share on the BSE, down 2.3%.

The iron ore mine and integrated steel plant of BPSL are located in Odisha and have a yearly production rate of 4.5 million tons of raw steel. The partnership plans to add capacity of 10 million tons by 2030 and potentially have an additional 15 million tons capacity, making it one of the largest steel businesses in India.

 The joint venture is anticipated to meet the projected increase in demand for steel domestically and to increase the creation of value added steel products. JFE Steel's percentage ownership of JSW Steel was 15% at the end of September.

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JFE Steel President and CEO Masayuki Hirose stated that the two companies have worked together on numerous occasions since they entered into a comprehensive partnership 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”, he added.

“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”, stated JSW Steel Joint Managing Director and CEO Jayant Acharya.

The agreement transfers the BPSL business to JSW Sambalpur Steel Limited through a slump sale for ₹24483 crore, pending the approval of regulatory agencies, including the Competition Commission of India.

According to JSW Steel, this agreement will help them achieve the target of 50 million tons per year by FY31, with continued growth, financial responsibility, and long-term participation in India's expansion of steel.