JSW Steel's Expansion Stumbles: Supreme Court Ruling Complicates Odisha Strategy
JSW Steel's plans to optimize costs in Odisha face a hurdle following the Supreme Court's order to liquidate Bhushan Steel and Power Ltd. This ruling nullifies JSW's strategy for significant cost reductions and expansion in the region, pushing the company to reconsider its upcoming projects.
- Country:
- India
The ambitious expansion plans of JSW Steel in Odisha have hit a significant hurdle following a Supreme Court ruling. The court order, as per a BigMint report, nullifies the resolution plan for Bhushan Steel and Power Ltd, causing JSW to re-evaluate its cost optimization and regional strategy.
JSW Steel's strategic investment in Odisha included mining assets expected to start production in Q1FY26, which would have streamlined operational costs at Bhushan Steel and Power Ltd. However, this strategic advantage has been undercut, affecting the company's growth trajectory in Eastern India.
With the court's decision disrupting the planned capacity increase at BPSL, JSW Steel's goal of reaching a crude steel capacity of 50 MT by 2030 is now challenged. The company is expected to refocus efforts on other local projects, including a collaborative 5 MT plant with POSCO.
(With inputs from agencies.)
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