British government will invest 1.25 billion pounds in Tata Steel

British Government: The British government will invest $621 million (£500 million) in Tata Steel’s Welsh plant as part of a plan to reduce carbon emissions. The objective behind this investment is to secure the future of the country’s steel industry. However, this could put 3000 jobs at risk.
Tata will commit 750 million pounds in a total funding package of 1.25 billion pounds for Britain’s largest steel maker. Which will shift the steel production process from coal-fired furnaces to low-emission electric arc furnaces. In a statement, the British government described this investment as the largest support package made by the government in history. Which will help in providing security to 5000 jobs.

Currently Tata Steel employs more than 8000 people in Britain. However, low-carbon electric furnaces are likely to threaten 3,000 jobs because they are less labor intensive. Indian-owned Tata Steel has long warned that it may have to close its sites without government help. However, British Business and Trade Minister Cammy Badenoch said on Friday that the government was saving jobs for the long term. The steel industry in the UK provides approximately 39,800 direct jobs. While others support around 50 thousand indirect jobs.