UK govt's counter-package to Tata Steel for Port Talbot plant
2 min read . Updated: 08 Feb 2023, 08:18 PM IST
Premium- The Tata Steel CEO & MD believes there is a big gap between what the company had asked for and what the British government has offered
TV Narendran, the chief executive officer and managing director of Tata Steel, said the UK government has offered a counter-package to the steel giant against its proposal seeking a financial package to execute its decarbonisation plans for its plant in Port Talbot.
The Tata Steel CEO & MD believes there is a big gap between what the company had asked for and what the British government has offered. However, he is yet to share any details of the government's offer.
The steel major, which owns the UK's biggest steelworks at Port Talbot in South Wales, had sought £1.5 billion ($1.8 billion) in support from the UK government to execute its decarbonisation plans.
The company also employs nearly 8,000 people across all its operations in the country.
When asked if the Rishi Sunak-government in the UK has responded to Tata Steel's proposal seeking financial support, the CEO replied in affirmative, news agency PTI reported.
Speaking to PTI, he said that Tata Steel UK had submitted a transition plan into a new process route, which will be greener and more sustainable. The UK government has come back with a counter-proposal, which is less than what the steel major wanted.
Narendran said Tata Steel will now have to re-work on its decarbonisation plans for the UK business. It will rethink the facilities that can be set up and those which can't be taken forward.
"We need to re-look at the configuration because our proposal we felt was the most optimal proposal from the long-term sustainability of the site but obviously the UK government will also be limited by how much support they can give because the UK itself is in a difficult position economically. So, we have seen what they have offered. Let us now work and see if there is something which can be worth it," the company official was quoted as saying by PTI.
The Financial Times last year had reported that Tata Steel may close sites including Port Talbot unless it receives $1.8 billion from the UK government.
Allies of UK business secretary Kwasi Kwarteng had then said that he wants to help steelmakers, including Tata, decarbonise the industry, but believes future subsidy decisions must be taken by a new Conservative leader and prime minister, according to the report.
Meanwhile, the steel major has reported a surprise consolidated net loss of ₹2,224 crore for the third quarter ending 31 December, 2022 (Q3FY23). This is a decline of 76% from ₹9,572 crore profit posted in the corresponding quarter of last year.
The steel production company's revenue from operations declined 6% to ₹57,083.56 crore for the period under review as as compared to ₹60,783 crore in the year-ago period.
With agency inputs
