UK asks Tatas to accept revised JLR proposal

The UK Government has asked Indian conglomerate Tatas to accept a revised proposal to guarantee hundreds of millions of pounds of short-term funding for luxury brands Jaguar Land Rover or risk the plan being taken off,says a media report.

The UK Government has asked Indian conglomerate Tatas to accept a revised proposal to guarantee hundreds of millions of pounds of short-term funding for luxury brands Jaguar Land Rover or risk the plan being taken off,says a media report.

UK Business Secretary Lord Mandelson has warned Tatas — the owner of Jaguar Land Rover — to accept a revised proposal to guarantee hundreds of millions of pounds in short-term funding or risk seeing it taken off the table,The Telegraph has reported.

Quoting people close to the situation,the report said,

“Ministers were surprised that Tatas had not yet provided a response to the latest proposal”.

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“The warning is understood to have been delivered by Lord Mandelson to Tata Motors in recent days following a fresh funding proposal that was made by the Government earlier this month,” the publication said in a report published online on Saturday.

According to the newspaper,at stake is a Government guarantee for 340 million euros (290 million pounds) of European Investment Bank loans.

Further,a separate short-term commercial loan of up to 200 million pounds is also understood to be being negotiated by the company before a longer-term financing structure is established,it added.