UK govt ready to guarantee loans for Tatas' JLR biz

The British government has said that it is ready to guarantee loans to Indian conglomerate Tata group-owned Jaguar Land Rover, for which it is talking with European banks on the behalf of the cash-strapped carmaker.     

While making it clear that the primary financial responsibility of JLR rests with the Tatas, the UK continues to hold "confidential discussions" over both short and long-term financing and business plans, an official at the British government's Department of Business, Enterprise and Regulatory Reform (BEFR) told PTI.      

JLR, acquired by the Tatas in April last year for 1.15 billion pounds from US auto giant Ford, has been facing financial troubles due to the global economic slowdown, and the company had sought assistance from the government.    

Earlier in a media interview, Tata group chief Ratan Tata had said that he only wanted the UK government to facilitate access to credit and not a bailout for JLR. Besides, some other media reports have said recently that talks between the Tatas and the UK government have hit an impasse.     

"The government wants to see JLR safely through difficult trading times and provide stability for the company and its employees. We regard JLR as a visible company with good long-term prospects," the BEFR spokesperson said.