Tata Motors had registered expression of interest in acquiring a GBP 10 million loan from the UK government to set up its ‘Vista’ electric car project in the UK. According to The Observer, the English Daily in Britain, officials from the business department of Secretary of State for Business, Innovation and Skills have stated that they need more time to think about granting the loan, up to nearly 6 months more.
Tata Motors has threatened to scrap the project and the launch of Vista Electric car in the UK, if it is denied the loan from the government, reports The Observer. "The company is furious after being told by officials from (Secretary of State for Business, Innovation and Skills) Lord Peter Mandelson's business department that it needed more time to find out if the venture will be considered for the loan, taking the total wait to six months," it said.
British government had announced a 2.3 billion pound package earlier this January meant as the car industry assistance package. It was announced for auto manufacturers interested in building cars based on fuel efficient technology. So far no money has been released from the package. On the other hand, Nissan has already acquired a loan of 400 million Euros from the European Investment Bank and Tata Motors’ subsidiary Miljo has also been granted a 6 million pound loan and 1 million pound grant from the Norwegian government. Tata Motors is still under urgent talks with the British government regarding its loan for its electric cars project.
