The UK government has proposed to revise the offer made to Tata Steel UK in January, where the steel-making company has been seeking a financial package to execute its decarbonisation plans for the Port Talbot plant, The Economic Times reported.
Tata Steel has reportedly sought fiscal support from the UK government for replacing the two blast furnaces at its factory that are nearing the end of their operational life. The Tata Group has conveyed its stand to the UK that it cannot continue with its British growth plans based on the offer last made, as per the report.
Moneycontrol could not independently verify the report.
Meanwhile, in an interview with Moneycontrol in February, chief executive officer and managing director of Tata Steel TV Narendran said, “We have given them (UK government) a proposal. They got back with a counterproposal. So, let's see where it ends. So, we are in discussion.”
According to reports, the UK government had made a £600-million package proposal for incentivizing green steel for two steel-making companies that operate in the country. "Tata Steel feels the £600-million package from UK govt is less than expected, so conversation is going on that front, with the government to see what can be done," Narendran had said.
The company had sought 1.5 billion pounds from the UK government to execute its decarbonisation plans. Tata Steel owns the UK's largest steelworks at Port Talbot in South Wales and employs around 8,000 people across all its operations in the country.
Also Read: Tata Steel in talks with UK govt over decarbonisation package
Narendran have held talks with UK Prime Minister Rishi Sunak over the issue and have stated the group’s decision of taking a final call in the coming months, ET reported. “We continue to be in discussions with the UK government and other stakeholders with regard to the future strategy for Tata Steel UK," a Tata Steel spokesperson told ET.
“Tata Steel has bent over backwards to be supportive to its UK commitment and done the best it can,” another executive told ET. “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.”