Mumbai-based Jindal Group’s steel arm JSW Steel will sell the steel business of its subsidiary Bhushan Power and Steel into a new 50:50 joint venture with Japan’s JFE Steel, with a transaction valued at INR 244.83 bn (USD 2.72 bn), according to a statement.

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Structure + funding: JFE Steel will invest INR 157.50 bn (USD 1.75 bn) into the JV in two tranches, making it one of the largest foreign investments in India’s steel industry. The transaction comes after India’s supreme court approved in September JSW Steel’s takeover of debt-ridden Bhushan Power and Steel, following months of court tussles that reversed an earlier decision to block the deal.

Strategic roadmap: The JV plans to leverage Bhushan Power & Steel’s existing 4.5 mn tonnes per annum (MTPA) integrated steel plant and iron ore mine in Odisha. The strategic goal is a significant capacity expansion to 10 MTPA by 2030, with plans to scale further to 15 MTPA, positioning the asset among the largest steel production facilities in the country.

Backdrop: The partnership comes as the sector benefits from strong domestic steel consumption and a manufacturing-led demand recovery in recent months, Reuters reports.

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