Tata Steel, Jaguar Land Rover not likely to qualify for emergency funding by UK government

Talks between Jaguar Land Rover and Tata Steel with the United Kingdom (UK) government have ended, leaving both firms to rely on private financing to overcome the impact of coronavirus on business.

Talks between Jaguar Land Rover and Tata Steel with the United Kingdom (UK) government have ended, leaving both firms to rely on private financing to overcome the impact of coronavirus on business.

The report said that emergency funding could not be extended to Jaguar Land Rover (JLR), luxury car unit of India’s Tata Motors Ltd as it did not qualify for taxpayer support.

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The bailout plan, titled “Project Birch”, had been authorized by Finance Minister Rishi Sunak in May to rescue companies that are seen as strategically important, with the Treasury saying it may step in to support crucial businesses on a “last resort” basis after other options run out.

“Tata Steel remains in ongoing and constructive talks with the UK Government on areas of potential support,” Tata Steel said in a statement.

 

Source: Reuters