It is actually the other way round. Tata Steel has proposed that the British government invest over £900 million to pick up a stake in the British operations of Tata Steel. This, according to Tata Steel, will help to protect the Port Talbot steelworks in Wales. Under the new plan, the government will control 50% in Britain’s largest steelmaker.

This proposal will also entail that the Indian operations of Tata Steel writing off a similar amount of debt that the UK business owes to Tata Steel. However, there has been no official confirmation either from the UK government or Bombay House. Tata Steel employs 8000 workers in the UK, making it a very sensitive issue for the British Government.

The current Chancellor of the Exchequer, Rishi Sunak has already clarified that the government will set an exceptionally high bar for companies that seek taxpayer-funded bailouts in the midst of the pandemic. However, a FT report even indicated that they may be close to a deal. Tata Steel has been trying hard to exit the European steel business.