British luxury car company Jaguar Land Rover and Tata Steel, both owned by the Indian conglomerate Tata, have been left to fend for themselves and rely on private financing to recover from the impact of the novel coronavirus pandemic on their businesses, after negotiations of the two companies with the UK government on a possible bailout package came to an end. This was reported by the Financial Times on Friday.
Since the government deemed that Jaguar Land Rover (JLR) did not qualify for taxpayer support, therefore the talks failed, said the report. JLR is the luxury car unit of India's Tata Motors Ltd.
The UK Finance Minister Rishi Sunak had in May authorized the bailout plan which was titled "Project Birch" and was aimed at rescuing the companies are viewed to be strategically important for the country. The UK Treasury department had said that the government could intervene to lend support to such crucial businesses only a "last resort" and only after all other options had been exhausted by such companies.
The government funding scheme imposed strict conditions on any lending and therefore was infeasible for Tata, said the report quoting a source familiar with the matter.
"Tata Steel remains in ongoing and constructive talks with the UK Government on areas of potential support," Tata Steel said in an emailed statement.
The UK Treasury said it would not comment on individual companies while no immediate comment on the issue was available from Tata Motors.
(Source:www.businesstoday.in)
Since the government deemed that Jaguar Land Rover (JLR) did not qualify for taxpayer support, therefore the talks failed, said the report. JLR is the luxury car unit of India's Tata Motors Ltd.
The UK Finance Minister Rishi Sunak had in May authorized the bailout plan which was titled "Project Birch" and was aimed at rescuing the companies are viewed to be strategically important for the country. The UK Treasury department had said that the government could intervene to lend support to such crucial businesses only a "last resort" and only after all other options had been exhausted by such companies.
The government funding scheme imposed strict conditions on any lending and therefore was infeasible for Tata, said the report quoting a source familiar with the matter.
"Tata Steel remains in ongoing and constructive talks with the UK Government on areas of potential support," Tata Steel said in an emailed statement.
The UK Treasury said it would not comment on individual companies while no immediate comment on the issue was available from Tata Motors.
(Source:www.businesstoday.in)
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