Tatas in talks with UK for JLR bailout

British Business Secretary Lord Mandelson confirmed to Sky News that Tata Motors was in talks with the UK government over state aid for its acquisition of the Jaguar and Land Rover brands that cost 1.7 billion pounds, reports Vijay Dutt.

British Business Secretary Lord Mandelson confirmed to Sky News on Thursday that Tata Motors was in talks with the UK government over state aid for its acquisition of the Jaguar and Land Rover brands that cost 1.7 billion pounds.

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No decision has been taken so far. Sources familiar with the development said ministers and executives from Jaguar Land Rover were in daily contact with officials. A likely option would be a loan guarantee than a direct subsidy or state investment.

“We are analysing very carefully what is going on in the (car) sector and we will make good judgments in good time if it is appropriate for the government to take any action or if it is possible for us to do so,” Mandelson said.

Both Jaguar and the UK government refused to comment on the talks.