UK govt ready to guarantee loans for cash-strapped JLR

London: The British government has said 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 cashstrapped 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) said. JLR, acquired by the Tatas in April last year for £1.15 billion from US auto giant Ford, has faced financial trouble due to the global economic slowdown, and the company had sought assistance from the government.
Earlier in a media interview, Tata Sons chairman Ratan Tata had said 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 BERR spokesperson said. “That is why the government is having confidential discussions with JLR and its parent company over both short and long-term financing and business plans. These negotiations are continuing,’’ BERR said. It further said the government has actively encouraging Tatas “for the last six months to put together a long-term funding package’’. AGENCIES