JSW Steel Fast-Tracks ₹65,000 Cr Paradip Plant as Plan B Amid Bhushan Legal Uncertainty

JSW Steel is looking to focus on its new greenfield project at Paradip, Odisha, as the resolution plan of ₹19,700 crore for Bhushan Power and Steel (BPSL) is mired in legal troubles. This is a significant part of the company’s strategy to meet its ambitious 50 mtpa capacity target by the year 2030.

Speaking with BusinessLine, Jayanth Acharya, Joint Managing Director & CEO of JSW Steel, confirmed that the company would go ahead with Phase 1 of the 13.2 mtpa steel plant, designed with an initial capacity of 5 mtpa, stating that this is its “Plan B” for growth without interruption. “We feel we have strong grounds in our review petition before the Supreme Court, but from a capacity-building standpoint, our Paradip project gives us a solid alternative,” he said.

In May, the Supreme Court struck down the NCLT’s approval of JSW’s resolution plan for BPSL, ruling it non-compliant with IBC norms. A review petition by lenders and JSW was filed in June, with the hearing date yet to be scheduled.

Meanwhile, JSW is accelerating its infrastructure push in Paradip. A slurry pipeline from its iron ore mine to a pellet plant is under development, with the steel plant’s Phase 1 located adjacent to it. JSW Infrastructure is also operating an 18 mtpa iron ore terminal at Paradip Port.

In February 2024, JSW Group committed ₹65,000 crore to build an integrated manufacturing complex in Paradip. The complex will include a 13.2 mtpa steel plant, cement unit, captive power, and cargo facilities. On Friday, JSW laid the foundation stone after receiving 2,958 acres from Odisha’s Industrial Development Corporation.

Additionally, JSW acquired Saffron Resources for ₹679 crore, securing 887 acres in Odisha and strengthening its Eastern India footprint.

JSW currently has ₹66,463 crore worth of expansion projects, with ₹20,000 crore planned for FY25. While debt rose to ₹79,850 crore in Q1 FY25, Acharya noted that net debt-to-EBITDA remains at a manageable 0.95x, backed by capacity-linked earnings growth.