In order to establish a new 50:50 company that will house Bhushan Power and Steel Ltd.'s integrated steel plant in Odisha, JSW Steel Ltd. and Japan-based JFE Steel have finalized a Rs 15,750-crore joint venture.
One of the biggest joint investments in the local steel industry in recent years, the arrangement was revealed through an exchange filing on Wednesday.

Odisha Plant to Establish a New 50:50 Partnership
The BPSL facility, which is presently held by Piombino Steel Ltd., would be handed to the newly established joint business as part of the agreement, according to NDTV. Piombino Steel is held largely by JSW Steel, which holds 82.65%, with the remaining owned by JSW Shipping & Logistics Pvt. Ltd.

By 2030, the new collaboration aims to increase the Odisha complex's yearly production of crude steel to 10 million tonnes. The group's long-term production and technology roadmap is positioned to be heavily influenced by the projected expansion.
JSW Steel noted that profits from the acquisition will improve its balance sheet and provide additional cash for impending expansion commitments.
JSW Steel's expansion map centers on Odisha.
JSW Steel has been strengthening its ties with Odisha at the time of the most recent JV. Odisha was mentioned as one of the main places under consideration when the business and South Korea's POSCO Group inked a non-binding Heads of Agreement earlier this year to investigate the viability of establishing a 6-million-ton integrated steel factory in India.

The planned project, which is currently awaiting a thorough evaluation, would integrate POSCO's cutting-edge steelmaking technologies with JSW's domestic industrial infrastructure. According to company claims at the time, Odisha was a desirable location for large-scale investments due to its mineral supply, coal connections, and port accessibility.
POSCO’s Renewed Link to Odisha
The exploratory agreement with POSCO reminded Odisha of the South Korean company's previous attempt to build a 12-million-ton factory in Jagatsinghpur. Once touted as India's biggest FDI project, it was abandoned in 2017 due to difficulties obtaining land and changes in the market.
Subject to the successful completion of feasibility assessments, the new partnership with JSW has been seen as a possible route to reinstate the state as a center for high-capacity steel manufacture.