While Tata Motors continued to struggle at the bourses, another one of the Tata Group conglomerate's entities has some important news to share. As per reports, Tata Steel, which is one of the largest steel-making companies in the country, is all set to get a lucrative support package from the United Kingdom government.
Tata Steel Gets a Support Package
The Labour party's Keir Starmer-led UK government is set to confirm a GBP 500 million support package for the steel company. According to the current exchange rates, this amount would be over Rs 5,000 crore in Indian currency.
The development appears to have placated investors at Dalal Street, as the company shares made some gains in the intraday trading session on Thursday, September 11. This comes after a period of relative decline over the recent past.
Earlier this year, the company had decided to progress with a GBP 1.25 billion plan to commence the closure of current heavy-end assets and construct an electric arc furnace at Port Talbot. |
This said support package, which is seen as a part of the new government's industrial policy, will be earmarked for Tata Steel's port Talbot plant in Wales.
Earlier this year, the company had decided to progress with a GBP 1.25 billion plan to commence the closure of current heavy-end assets and construct an electric arc furnace at Port Talbot.
This development came to pass after months of national negotiations with trade unions in the UK.
The tension arose from the perceived threat of job losses.
As per reports, as many as 2,800 workers could be impacted by Tata's proposal to close the blast furnaces, which was intended to make up for more than ten years of losses at the plant.
Tata Steel Shares Rise
Coming back to the company's performance at the equity market, Tata Steels shares have reduced in size, declining by 1.71 per cent over the past five trading sessions.
On Thursday, after starting the day on a good note with major gains, the company's green trail lost its momentum. However, the company shares continued to be in green.
At 11:21 IST, Tata Steel shares saw an uptick of 0.83 per cent or Rs 1.23. This took the overall share to Rs 149.40 per piece.
