JSW Steel may face challenges in meeting expansion target after SC order on BPSL: Analysts
The Hindu
JSW Steel faces challenges after Supreme Court rejects Bhushan Steel resolution plan, impacting expansion and revenue goals.
Sajjan Jindal-led JSW Steel may face challenges in meeting its expansion target and maintaining revenue guidance after the Supreme Court judgement that rejected its resolution plan for Bhushan Steel and Power Ltd (BPSL), say analysts.
The company may also see a production cut of around 10% besides rejig in capital expenditure plans in view of the huge amount paid to the creditors of debt-laden BPSL, they said.
The Supreme Court on Friday set aside a resolution plan submitted by JSW Steel for Bhushan Steel and Power Limited (BSPL), holding it illegal and in violation of the Insolvency and Bankruptcy Code (IBC).
A bench comprising Justices Bela M Trivedi and Satish Chandra Sharma criticised the conduct of all key stakeholders in the resolution process -- the resolution professional, the Committee of Creditors (CoC) and the National Company Law Tribunal (NCLT) -- for enabling what it termed a "flagrant violation" of the IBC, and ordered the liquidation of BSPL under the IBC.
In 2019, JSW Steel won the bid to acquire Bhushan Power & Steel under the IBC for a little less than ₹20,000 crore. Later, in a letter to BPSL employees, Jindal had said, "Your contribution will be key in bolstering our ambitious growth plans of achieving 45 MTPA capacity well ahead of the 2030 timeline.
The synergies we draw will also play a pivotal role in transforming the lives of millions of our stakeholders." Speaking with PTI, an analyst at IIFL said BPSL has a capacity of 3.5 million tonne and if it goes from the hands of JSW Steel then it will definitely put stress on the balance sheets of JSW Steel.
"BPSL was generating ₹2,400 crore EBIDTA, if it goes then an EBIDTA of ₹2,400 crore vanishes straight away. It will impact JSW Steel's cash flow making debt servicing a problem. Besides revenues may also be impacted," the analyst said requesting anonymity.
U.S. President Donald Trump to announce Federal Reserve chair nominee on January 30, amidst tensions with current chair Jerome Powell over interest rates.
Critical minerals are pivotal in energy transition, posing challenges for affordability and supply chains, warns CEA in Economic Survey.
The Economic Survey urges fiscal flexibility for the Centre while warning States about deteriorating financial conditions due to rising deficits.
Economic Survey highlights fodder shortages as key challenge for India's livestock and fisheries sectors, impacting growth and production costs.
The 2025-26 Economic Survey argues that prioritizing economic growth over immediate carbon cuts is essential for sustainable climate adaptation.
India's internet user base reaches 958 million, with 57% from rural areas, highlighting rapid digital adoption across the country.
The Economic Survey reveals a decline in agricultural growth to 3.5% in 2025-26, despite steady foodgrain production increases.
Economic Survey 2025-26 warns unconditional cash transfers risk state finances, impacting fiscal sustainability and medium-term growth.
Economic Survey 2025-26 advocates for tax rationalization on debt-assets to enhance investment in corporate bonds and savings.
Restrictions may also be levied on marketing of infant and toddler milk and beverages to tackle rising obesity
Commercial Vehicles major Tata Motors Ltd. (TML) for the third quarter ended December 31, 2025 reported a 48% fall in consolidated net profit to ₹705 crore as compared with ₹1,355 crore in the year ago period due to one-time impacts of Labour Code and de-merger.
India’s energy gap between supply and demand has dropped to nil by November 2025
India's pharma industry shifts to value-driven approaches, focusing on complex generics, innovation, and expanding medical device exports.