Bhubaneswar: Over 3,000 people staged a protest on Wednesday afternoon at the Bhushan Power and Steel Ltd (BPSL) plant gate in Jharsuguda, voicing their anger and anxiety over the Supreme Court’s May 2 ruling ordering 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 company. The verdict 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 plan. The protesters comprised BPSL employees, contractors, local vendors, and small traders, all concerned about their future as uncertainty looms over the plant’s operations and the thousands of livelihoods it supports. JSW Steel, led by industrialist Sajjan Jindal, had acquired BPSL in March 2021 under the Insolvency and Bankruptcy Code (IBC) framework. The deal was considered a strategic milestone for JSW, securing a significant manufacturing presence in Odisha and eastern India. However, the Supreme Court’s recent decision has now cast a shadow over the company’s plans for the region. JSW Steel, which has major business operations in Odisha, had been actively expanding 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 establish a 13.2 MTPA integrated steel complex in Paradip. In light of the Supreme Court’s verdict, these ambitious investment plans may now face significant hurdles. Closely 20,000 individuals are directly and indirectly associated with BPSL, and there is growing fear of job losses unless the Central and Odisha governments intervene promptly. Meanwhile, reports indicate that the Centre is closely reviewing the Supreme Court’s order. The Department of Financial Services (DFS) acknowledged on Monday that discussions are underway regarding the government’s response. “I have already reviewed the order with all the lenders. We have taken a position, studied the judgment, and sought our advocates’ 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 decision will be finalised soon,” he added.
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