New Delhi, Dec. 8 -- JSW Steel Ltd's agreement with Japan's JFE Steel Corp. to form a 50:50 joint venture (JV) for ownership of Bhushan Power & Steel Ltd (BPSL) will not only help it deleverage, but also fund its ongoing capital expenditure. In turn, JFE will get a stronger foothold in the fast-growing Indian market amid subdued global opportunities.

It's worth noting here that JFE bought about 15% stake in JSW Steel in 2010 for Rs.4,800 crore, which is now valued at about Rs.42,000 crore. JFE's sales of Euro3.4 trillion (about Rs.2 trillion) for the year ending March 2025 was close to JSW Steel's Rs.1.7 trillion. However, JFE's technological advantage cannot be ignored.

JSW Steel acquired BPSL in 2021 through bankruptcy proceedings. Th...