British govt provides 10 mn pounds loan to Tata Motors
Tata Motors has been sanctioned a 10 million pounds loan for its new electric car project in the UK by the British Government.business Updated: Sep 19, 2009 17:38 IST
Tata Motors has been sanctioned a 10 million pounds loan for its new electric car project in the UK by the British Government.
With this, Tata has become the first company to secure a loan under the British government's 2.3-billion pounds Automotive Assistance Programme scheme, eight months after its launch.
The loan from the government will support 25 million pounds of the Indian company's own investment in plans to develop and manufacture Tata-branded electric cars in the UK.
The company is now "considering locations" in Britain to set up a factory. An announcement is expected soon.
Britain's Business Secretary, Lord Peter Mandelson, said last night: "The government is determined to help the car industry to exploit fully the opportunities offered by green manufacturing. Today we are backing Tata as Tata backs Britain.
"This loan will strengthen our electric vehicle manufacturing expertise, securing and creating high-value engineering jobs in the West Midlands."
A spokeswoman for the Business Secretary said the government is in talks with 17 other companies about projects worth 2 billion pounds.
Tata said: "It appreciates the state support."
The car maker, led by Ratan Tata, has developed a four-seater electric vehicle in partnership with Norwegian group 20 Miljo Grenland/Innovation. Production of the vehicle should begin in Norway later this year, The Daily Telegraph reported on Saturday.