"Tata Steel Negotiates with UK Government for New Project Funding"

The newly-elected Labour government in the UK has extended further support to Tata Steel to help establish new projects, as it seeks to preserve jobs at the company's Port Talbot unit amidst significant operational restructuring. The support comes in the wake of the liberal Voluntary Redundancy Aspiration programme, which, with its application deadline approaching on Wednesday, has already received 1,700 submissions.

TV Narendran, Managing Director of Tata Steel, noted that the pre-election concerns regarding job losses have subsided and the current sentiment is notably positive. "The UK Government is reaffirming their commitment, asking if we can propose new projects that would warrant additional funding to create new jobs," Narendran told Businessline.

In addition to this support, Tata Steel has recently announced strategic investments and restructuring efforts, including a ₹6,000 crore infusion into its subsidiary Neelachal Ispat Nigam and the acquisition of a 26% stake in TP Parivart. The company’s Q1 profit surged 75% to ₹919 crore, driven by cost reductions.

The UK Government has previously announced a £3 billion fund aimed at aiding the steel industry’s energy transition. Officials are now encouraging Tata Steel to explore both downstream and upstream projects, such as establishing DRI and scrap processing units, as well as galvanizing and colour coating lines.

"There are no concerns about the project being derailed," Narendran affirmed. "The focus is on developing a proposal that benefits both parties, with potential for additional funding if the proposal aligns with both our interests."

HBL