SC rejects JSW Steel's ₹19,700-crore bid for Bhushan Power; JSW says 'yet to understand' grounds

Steel major JSW Steel has said it's "yet to understand" the grounds for the rejection of the resolution plan submitted in the Supreme Court (SC) for bankrupt power and steel company Bhushan Power and Steel Ltd (BPSL). In a setback to JSW Steel, the Supreme Court on Friday directed the liquidation of Bhushan Power and Steel, terming JSW Steel's ₹19,700-crore resolution proposal illegal and contrary to the IBC (Insolvency and Bankruptcy Code) provisions.

JSW Steel , in its exchange filing, said once it receives the order, the company will review it, along with its legal advisors, and decide on its further course of action. "The Supreme Court pronounced Judgment today i.e 02-05-2025, rejecting the Resolution plan submitted by the Company and approved by NCLAT, on certain grounds. We are yet to receive the formal copy of the Order to understand the grounds for rejection in detail and its implications. Once we receive the Order and are able to review the same along with our legal advisors, we will decide on our further course of action."

The company said it will keep the exchanges informed of further developments as required under applicable laws.

As per JSW Steel's application, it proposed ₹19,350 crore to the financial creditors of Bhushan Steel. This translated into around a 60% haircut on the original debt worth ₹47,000 crore. The company had also proposed to pay around ₹350 crore to operational creditors against their claims worth ₹733 crore.

Bhushan Steel, one of the 12 large non-performing assets (NPAs) identified by the Reserve Bank of India, was referred for resolution under the IBC in 2017. The current SC ruling not only comes as a setback for JSW Steel but also for financial creditors.

In a separate development, JSW Steel said in its exchange filing a revisionary authority in Odisha has set aside demand notices worth Rs 702 crore sought by the deputy director of mines for certain violations in the state, and that the matter has been has remanded back to the state government to dispose of the same after giving proper opportunity of hearing to the company.

The alleged violations included a drop in the grade of production, violation of the mining plan and use of a higher mesh size for screening in respect of iron ore mining at Narayanposhi, Jajang, Nuagaon and Gonua mines. The company had filed an appeal before the district mining officer/revisionary authority.

Shares of JSW Steel closed 5.46% down at ₹972.15 apiece on the BSE on Friday.