India’s Supreme Court approves JSW Steel’s acquisition of Bhushan Power and Steel

India’s Supreme Court has approved JSW Steel’s $2.3 billion acquisition of Bhushan Power and Steel (BPSL), overturning its previous decision to reject the deal, The Economic Times reports.

The latest ruling recognizes JSW Steel’s significant investments in modernizing BPSL, preserving jobs, and ensuring the company’s continuity.

In 2017, proceedings were initiated against BPSL under the Insolvency and Bankruptcy Code (IBC). JSW Steel became the successful applicant for debt settlement, with its proposal approved by the National Corporate Law Tribunal in 2019. However, the plan was delayed due to numerous court proceedings, including the seizure of Bhushan Power and Steel’s assets. The seizures were finally lifted in December 2024.

In May 2025, the country’s Supreme Court rejected the deal six years after its initial approval, ordering the liquidation of BPSL and the cancellation of JSW Steel’s debt settlement plan. This caused concern among buyers of other distressed assets.

Subsequently, at the end of July this year, a special bench of the Supreme Court withdrew the May order and agreed to reconsider the case. The court reinstated five related petitions, including to reconsider the validity of the JSW settlement plan and the objections raised by the former founders of BPSL.

One of the central disputes was whether the EBITDA generated during the settlement period should be accrued to creditors or remain with the company. Delays in the implementation of the plan were also considered. The court rejected these claims in its latest decision.

It should be noted that JSW Steel will allocate 20,000 crore rupees ($2.4 billion) for capital expenditures in the 2025/2026 financial year. A significant portion of this will be directed toward the third phase of the expansion of the Dolvi plant (Maharashtra state). The remaining funds will be directed toward ongoing projects at Bhushan Power, Jindal Vijayanagar Metallics (JVML), and processing operations.