JSW Steel is seeking shareholder approval for a strategic joint venture with Japan's JFE Steel Corporation to strengthen its finances and fund its expansion plans. 

The partnership will involve the steel-making assets of Bhushan Power & Steel (BPSL), which JSW acquired through insolvency proceedings in 2021. Under the proposed deal, the assets will be transferred to a new 50:50 joint venture, with JFE investing Rs 15,750 crore for its stake. The transfer will occur through a slump sale to a JSW subsidiary for Rs 24,483 crore. The move is expected to bring in cash inflows of Rs 32,350 crore, significantly reducing JSW Steel’s consolidated net debt by Rs 37,250 crore. This will enable the company to accelerate domestic production expansion through 2031. 

JSW Steel will retain a 50 percent stake in the joint venture, sharing in the future growth of the BPSL business, now enhanced by JFE's global expertise. Company management described the transaction as strategically sound and beneficial for long-term growth.