Mumbai, Dec. 3 -- In a deal that is expected to ease its stretched balance sheet while sustaining an expansion drive, billionaire Sajjan Jindal-led JSW Steel will transfer the steel assets of Bhushan Power & Steel Ltd (BPSL) into a new 50:50 joint venture with Japan's JFE Steel Corp, a regulatory filing by JSW Steel announced on Wednesday.

The deal, anchored by JFE's Rs.15,750-crore commitment, is expected to nearly halve JSW Steel's debt and ring-fence the BPSL assets under a clean JV structure. This will be the second joint venture between the two companies, the other being JSW JFE Electrical Steel.

In a complex transaction that is expected to be completed in the first half of FY27, JSW Steel will initially receive Rs.24,283 crore in ...