The Tata Group has refused a 10-million-pound loan from the Government of UK, according to media reports that came out this week. The loan was offered to the company to develop an electric version of one of its car models. The Sunday Times reported that Tata Motors, which also owns UK-based luxury auto brands Jaguar and Land Rover, rejected the loan as it could get better terms from private lenders.

A few weeks back, Lord Mandelson, UK’s Business Secretary, had announced that the country would back Tata Motors’ electric cars and that it could provide 10 million pounds to the company under the Automotive Assistance Programme (AAP). The loan was to be used for research at the Tatas’ European Technical Centre in Warwick, set up in 2005.

The report also said that while the Tata Group had not commented on the matter, the Department for Business, Innovation and Skills said that the company was still free to accept the loan.

Courtesy: www.driveinside.com