Companies

Tata Steel proposes £900 million bailout from the UK government: Report

Hemani Sheth Mumbai | Updated on July 26, 2020 Published on July 26, 2020

Tata Steel has approached the United Kingdom government with a proposal for the government to inject approximately £900 million and pick up an equity stake in the company in return as per media reports.

The company has approached the government to inject the funding in return for an equity stake of up to 50 per cent to UK taxpayers, as per the report. This is to protect its British operations including the Port Talbot steelworks in Wales, Sky News reported.

The company has not confirmed the report so far.

SkyNews in April had reported that Tata Steel had approached the United Kingdom and Welsh governments seeking a £500 million bailout to support the industry currently grappling from a major slump as a result of the Covid-19 pandemic.

Tata Steel owns the Port Talbot steelworks in South Wales with employees almost about 8,385 people in the UK including 4,000 at Port Talbot, according to the Guardian.

The issue of the cap limit for a bailout package for steel industries was raised by Aberavon MP Stephen Kinnock in April. He had urged the government to raise the limit on its Coronavirus Large Business Interruption Loan Scheme to protect the steel industry.

A spokesperson for Tata Steel earlier this week had said that the company was in active discussions with the UK government regarding options for the future of Port Talbot operations, ET had reported.

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Published on July 26, 2020
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