Bhubaneswar, May 8: Over 3,000 people gathered in protest on Wednesday afternoon at the Bhushan Power and Steel Ltd (BPSL) plant gate in Jharsuguda, expressing their anger and apprehension over the Supreme Court’s May 2 ruling that ordered the liquidation of the company.

The apex court, on April 2, rejected JSW Steel’s resolution plan for BPSL under the Corporate Insolvency Resolution Process (CIRP) and instead directed the liquidation of the debt-ridden firm. The judgment overturned earlier approvals granted by both the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT), which had cleared JSW Steel’s acquisition bid.

The demonstrators included BPSL employees, contractors, local vendors, and small traders — all deeply concerned about their future as uncertainty hangs over the plant’s operations and the thousands of livelihoods it sustains.

JSW Steel, led by industrialist Sajjan Jindal, had taken over BPSL in March 2021 under the Insolvency and Bankruptcy Code (IBC) framework. The acquisition was hailed as a strategic milestone for JSW, bolstering its manufacturing presence in Odisha and eastern India. However, the Supreme Court’s recent verdict has now clouded the company’s regional expansion plans.

JSW Steel, with major business interests in Odisha, had been steadily growing its footprint in the state. It has proposed a 5-million-tonne per annum steel plant in collaboration with South Korean giant POSCO in Keonjhar and is investing Rs 65,000 crore to set up a 13.2 MTPA integrated steel complex in Paradip.

In light of the Supreme Court’s order, these ambitious investments may now encounter significant obstacles. Nearly 20,000 people are directly and indirectly associated with BPSL, and fears of widespread job losses are mounting unless the Central and Odisha governments intervene without delay.

Meanwhile, reports suggest that the Centre is closely examining the Supreme Court’s order. The Department of Financial Services (DFS) confirmed on Monday that internal deliberations are underway regarding the government’s response.

“I have already reviewed the order with all the lenders. We have taken a position, gone through the judgment, and sought our legal experts’ views,” said DFS Secretary M. Nagaraju, according to a report by Reuters. “Now we are formulating a view within the government on how to approach the judgment. A final decision will be taken soon,” he added.

Article By:

AK Sahoo, A Sr Journalist.

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