Indian carmaker Tata is threatening to ditch its plans to build electric cars in the UK if the government delays the delivery of a £10m loan to the company.
According to The Guardian, the company is 'furious' after being told by official from the Lord Mandelson's Business department last week that it required more time to consider the loan, part of a £2.3bn aid package to the car industry.
No money has been released by the government from its £2.3bn package, despite the launch of the 'low carbon industrial strategy' designed to reduce carbon emissions from all sectors including transport.
Tata Motors is also believed to be in deadlock over talks with the department to gain financial support for Jaguar Land Rover.
According to the daily newspaper, one Tata Motors executive wrote to colleagues complaining of having to ‘jump through hoops’ to make sure the company could repay the loan.
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