- 06 Apr 2023
- ICICIdirect Research
UK GOVERNMENT LIKELY TO SWEETEN PACKAGE FOR TATA STEEL UK
TATASTEEL - 153 Change: -3.52 (-2.25 %)News: As per media sources, the UK government has offered to revise the offer made in January to Tata Steel UK, which has been seeking a financial package to execute its decarbonisation plans for the Port Talbot plant. Tata Steel has sought fiscal support from the UK government for replacing the two blast furnaces at its factory that are nearing the end of their operational life
Views: The restructuring cost is pegged at £1-2 billion, as per reports. However, the steelmaker is said to be of the view that the business does not justify such a large investment and, hence, is reportedly seeking half the capital from the British government. In January this year, the British government had offered a package for the steel industry, including Tata Steel UK. Tata Steel had then said it will consider this carefully before arriving at strategic decisions on the future of its UK business. The Tata Group had conveyed its stand to the UK that it cannot continue with its British growth plans based on the offer last made. While the details of the fiscal package first proposed by the British government earlier this year are not publicly known, it is understood that it was less than what the steelmaker is seeking
Impact: Positive