INSUBCONTINENT EXCLUSIVE:
Tata Steel, Tata(Photo: Shutterstock)4 min read Last Updated Sep 11 2024 | 8:52 PM IST
The Labour government in the UK has cleared the
financial future.
In a statement, Tata Steel said that it has signed a 500 million pound Grant Funding Agreement (GFA) with the UK
contours of the agreement in the House of Commons on Wednesday.
The deal was agreed on Tuesday in a meeting between UK Prime Minister
Keir Starmer, Business and Trade Secretary Jonathan Reynolds, Chancellor Rachel Reeves and Tata group chairman, Natarajan
Wales.
However, it aims to preserve 5,000 jobs as in the earlier proposal announced by the Conservative-led UK government a year
ago.
Tata Steel employs 8,000 people across UK and had earlier indicated a potential impact of up to 2,800 as part of the transition to
EAF steelmaking process.
For the EAF, Tata Steel said that the basic engineering was now complete, and equipment orders would be placed
Large-scale site work was expected to commence around July 2025
And the EAF is likely to be operational within three years.
T V Narendran, Tata Steel chief executive officer and managing director,
training to give workers a steady income and upskill them for the jobs of the future.
About 2,000 staff members have expressed interest
in voluntary redundancy.
The deal announcement ends the uncertainty around Port Talbot
A 1.25 billion pound proposal at Port Talbot was made public in September 2023 by the Conservative-led UK government
However, in the general elections that followed in July 2024, the Labour party landed a historic win, putting a question mark on the grant
funding and the future of Port Talbot.
The UK government said that watertight conditions within the GFA will ensure that the government
can claw back investment should Tata Steel not fulfil its commitments
This includes increased penalty payments should the company not retain 5,000 jobs across its UK business post-transformation.
For those
at risk of compulsory redundancy, Tata Steel will offer a comprehensive training program
Employees on the training program will be on full pay for the first month and 27,000 pound per annum for 11 months following, which will be
funded by Tata Steel.
The UK government also said that Tata Steel has committed to work with the government to evaluate new investments
in steel.
Tata Steel will also be releasing 385 acres of their site for redevelopment.First Published: Sep 11 2024 | 8:09 PMIST
