UK: Tata Steel has warned the government of UK to shut all of its operations in the country in case the government fails to provide the monetary aid of £1.5 billion, approximately 14,400 crores, within a timeframe of one year. Tata Steel is currently looking forward to the establishment of an eco-friendly, ’Green steel plant’ in order to minimise carbon emissions.
“A shift to a greener steel plant is the intention that we have. But this can only be accomplished with financial aid from the government. The company has been discussing the venture for the last two years and might have to consider closures of sites,” as N Chandrashekharan, chairman of Tata Sons, stated.
Tata Steel solely employs nearly 8000 citizens across its operations in the country. Meanwhile,it owns the United Kingdom’s largest steelworks at the renowned ‘Port Talbot’, which the company might be forced to shut down in case of failure of the UK government in subsidising the project.
The company has decided to take measures like closing two blast furnaces at the Port Talbot plant, stopping primary steelmaking and building two electric arc furnaces, he further stated.
As per the reports, the ‘Green Plant’ establishment in the UK may cost nearly three billion pounds. Therefore, Tata Steel sought a 50% aid of £1.5 billion from the UK government to meet the financial requirements of their ambitious venture in the country.
The United Kingdom has already been eyeing upon ‘ net zero greenhouse gas’ emissions in the country by 2050, and investing in such visionary projects will mutually benefit both the nations.
This is really crucial in terms of trade relations between the United Kingdom and India. Both the nations are already putting in a lot of effort for the same. The negotiations for the Free-Trade Agreement are also underways and are to be concluded by October 24th.