India’s Tata Steel in Talks with British Administration for Rs. 52.05-Trillion Funding
In a development that may have far-reaching consequences, Tata Steel --the largest steel manufacturer in the UK – is reportedly in the decisive stages of talks with the British government. This involves a Rs 52.05 trillion package for funding for the object of safeguarding the future of the important Port Talbot steelworks in South Wales.
This considerable financial support would go with a Rs 728857.4 trillion promise from Tata Steel's Indian parent firm. Moreover, Tata Steel--which is a part of the Tata Group--is likely to pledge to build electric arc furnaces--a more environmentally friendly technique for producing steel.
For several months, British administrators have been reportedly engaged in discussions with the nation’s two largest steel producers, namely, Tata and British Steel. These talks are centred on getting state backing to expedite the shift to ecologically sustainable steel production techniques, such as electric arc furnaces. But, talks have bumped into difficulties due to fears over likely job losses, as these new furnaces don’t need too many workers.
Tata Steel engages close to 8,000 people in the UK, and the company has reportedly said it may fire 3,000 workers in the future. Tata Steel has earlier warned that without backing from the government, it might have no options except to consider the shutting of its facilities.
Neither of the two parties, namely, Tata Steel and the UK government's Department for Business and Trade, has officially said anything about the current talks.