S Kalyana Ramanathan / London April 08, 2009
The board of the Luxembourg-based European Investment Bank (EIB) today approved a £340 million (Rs 2,500 crore) loan to the Tatas-owned Jaguar Land Rover (JLR) to support efforts to make low-emission cars.
A JLR spokesperson said the loan would support the company’s significant investments in environmental technologies that were crucial for the future (part of a total commitment of over £800 million, that is, Rs 5,900 crore).
In all, the board today cleared loans worth ¤866 million to fund research and development in Europe to make cleaner vehicles. Among others, Nissan’s European operations have been sanctioned a loan of ¤400 million for efforts to produce clean cars in the UK and Spain.
A JLR spokesperson said, “Access to funding is subject to a number of due diligence and commercial loan criteria, including partial backing by the UK government’s guarantee scheme.”
The loan to JLR comes under a scheme under which the UK government provides a guarantee for loans from EIB to the automotive sector for work to reduce emission.