Tata Steel Convinces UK Government to Reconsider Fiscal Aid

 After persistently seeking an increase in financial aid from the UK government for its British growth plan, Tata Steel finally succeeded in convincing the UK government to revise the offer made in January.

Tata Steel’s Feat

Tata Steel UK has sought a financial package from the government to execute its decarbonisation plans for the Port Talbot plant. Initially, the UK government sanctioned £1-2 billion for the restructuring cost. In response, the Tata Group has clarified its stand that it cannot continue with its British growth plans based on the offer last made. An executive close to the development stated, "Tata Steel has bent over backward to be supportive of its UK commitment and done the best it can. Now it is really up to the UK government to show their seriousness and commitment in this regard. We will take a final call on this soon."

Reports say that the Tata Sons chairman N Chandrasekaran and Tata Steel MD TV Narendran stated that they will take a final call in the coming months at a discussion with UK Prime Minister Rishi Sunak. Though the details of the fiscal package that was initially proposed are not known, it can be inferred that it was less than what the Tatas were expecting.

While a spokesperson from the Department for Business and Trade said, "The UK government is providing extensive support to our vital steel industry on energy costs, fair public procurement, and protecting the sector from unfair trade. We cannot comment on any commercially sensitive discussions with individual private companies", a Tata Steel spokesperson confirmed "We continue to be in discussions with the UK government and other stakeholders with regard to the future strategy for Tata Steel UK."

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