JSW-BPSL Deal Collapse Triggers Industry Alarm as 2.75mt Steel Capacity Faces Liquidation

In a landmark ruling, India’s Supreme Court has scrapped JSW Steel’s ₹19,700 crore acquisition of Bhushan Power & Steel Ltd (BPSL), ordering liquidation of the asset and sending shockwaves across the steel value chain. The verdict halts a critical expansion for JSW and places 2.75 million tonnes of crude steel capacity in limbo.

The court found JSW’s resolution plan non-compliant with the Insolvency and Bankruptcy Code, citing violations such as funding through optionally convertible debentures and failure to implement the plan within approved timelines. The Committee of Creditors and the resolution professional were also faulted for lapses in due diligence.

Industry participants warn the liquidation could disrupt regional supply, particularly in eastern India, and lead to raw material demand imbalances. Coke suppliers and met coal traders tied to BPSL now face demand uncertainty. With one of India’s most strategic steel assets upended, attention turns to whether JSW will re-bid—or if a new buyer will emerge.