Tata Motors today said it expects to meet the funding requirement for the British marquees Jaguar Land Rover (JLR) without the loan guarantees from the UK government, which welcomed the development.
The automaker said it has been in discussions with commercial banks for JLR funding facilities, many of which have been concluded successfully.
"With the positive trend in the external environment in financial markets and improvement in general liquidity, these arrangements have been and are expected to be concluded without necessitating guarantees from the UK government, for which discussions had been ongoing for some time," Tata Motors said in a statement.
Welcoming the news that the Tatas has secured funding for JLR's short-term financial needs, the UK's Department for Business, Innovation and Skills, in a separate statement said that "government support for the car manufacturer is not now needed".
According to Tata Motors, it anticipates to complete the remaining funding facilities for JLR from commercial banks in the coming weeks.
UK Business Secretary Peter Mandelson said the fact that the banks and commercial capital markets are meeting JLR's funding is a "clear sign of confidence in the company, its products and the automotive sector".