INDIA’S TATA Motors has said it no longer needs UK guarantees on loans for its Jaguar Land Rover (JLR) unit as it has secured private funding and is close to finding a commercial backer for a European Investment Bank (EIB) loan.
The British government has been holding talks with Tata and JLR on guaranteeing short- and long-term loans.
The talks centred on a rescue package that involved a €396 million (£340 million) approved loan from the EIB, to be used for the development of environmental technologies, and €525 million from British banks, underwritten by the government. Media reports quoted industry experts in May as saying the talks were stalled because the carmaker would not accept the tough conditions imposed by Britain in return for guaranteeing loans.
These included the right of the government to veto management decisions.
Tata said in a statement issued yesterday that it had secured many funding facilities from commercial banks, with the balance expected to be completed in the coming weeks.
It also said it expected the long-term EIB loan to be secured shortly through commercial arrangements.