TATA's ready to bailout Jaguar

With no signs of financial aid coming from the UK government, Indian conglomerate Tatas have agreed to inject "tens of millions of

pounds" into its British car company Jaguar Land Rover, says a media report.

"Tata, the Indian owner of Jaguar Land Rover, has agreed to inject 'tens of millions' of pounds into the British car company to prevent an immediate cash flow crisis, while the government continues to consider the case for a taxpayer- funded bail out," the Financial Times has reported.

Jaguar Land Rover has been reportedly seeking financial assistance from the government to the tune of one billion pounds in the wake of sharp fall in sales and credit crisis.

Further, the car maker's chief David Smith has cautioned of thousands of job losses unless it receives emergency aid.

Tatas are striving to raise over Rs 15,000 crore, on top of Rs 13,000 crore it got from sale of equity in a telecom arm. The group plans to mobilise the resources through public offer of debt securities, sale of Tata Motors' vehicle loan pool, private equity placement and soliciting public deposits.

Meanwhile, the Financial Times in its report published online on Sunday noted that the cash injection from Tatas has bought ministers breathing space to respond to demands for multi-billion pound loan guarantees from the car sector.

Quoting a government insider, the daily said, "They (Tata) have managed to solve the immediate difficulties so may be they can resolve some others as well."

Last week, Business Secretary Lord Mandelson had said the government does not have "an open cheque book" for ailing private companies and Tatas have the "first responsibility" to ensure the survival of the luxury car maker Jaguar Land Rover.