Tata Steel Convinces UK Government to Reconsider Fiscal Aid
- Posted on April 7, 2023
- News
- By Arijit Dutta
- 386 Views
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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