Japanes steelmaker will acquire 50% stake in JSW Kalinga (bankrupt Buushan Power and Steel) for ₹15,750 crore. JSW Kalinga is a wholly-owned subsidiary of Piombino Steel, which is 82.65% owned by JSW Kalinga, and 17.35% by JSW Shipping. JFE Steel will acquire 50% stake in JSW Kalinga in two equal tranches, the company said in a statement.

Both will jointly own and operate the bankrupt BPSL's plants and they will have the right to appoint two directors each in JSW Kalinga. Both partners will also have the right to appoint three directors each in JSW Sambalpur. JSW Kalinga will issue equity shares to JFE worth ₹7,875 crore.

The two steel giants intend to expand crude steel production at BPSL's steelworks to 10 million tonnes from the present 4.5MT by 2030. The plant has enough land parcel for accommodating the expansion facilities. 

JFE is also an equity holder JSW Steel with 15% stake. The companies recently announced two more joint ventures which together will invest Rs 5,485 crore to expand specialised electrical steel capacity to 3.5 lakh tonne across its Vijayanagar and Nashik facilities.

Bhushan owns an iron ore mine and integrated steelworks in Eastern India, with the crude steel production capacity of 4.5 million tonnes per year. It produces steel coils and sheets, bars, and wire rods and is a cost-competitive steel company with a wide sales network primarily in eastern and northern India.

According to JFE statement, the Japanese firm will provide its technological capabilites to strengthen the production and expansion, along with JSW’s operational excellence. "The companies will be able to expand the production of high value-added products and improve productivity," JFE statement said.

The investment process will start with JSW Steel transfering the steel business of BPSL through a slump sale to JSW Sambalpur for ₹24,883 crore. JSW Sambalpur is a wholly-owned subsidiary of JSW Kalinga Steel.

JSW Steel had acquired BPSL through insolvency and bankruptcy process (IBC). However, in an earlier verdict of Supreme Court in May 2025 took disruptive turn in the insolvency ecosystem and ordered liquidation of BPSL primarily on grounds of alleged procedural lapses and delays in implementation, despite the plan having been approved by the CoC, the NCLT, NCLAT, and largely executed by JSW Steel.

In November, the bench of former Chief Justice BR Gavai restored JSW’s plan, helping the company to proceed with its takeover and plan.