After Tata Steel Europe's (TSE) plans to merge its operations with Thyssenkrupp fell through, the Tata Steel and its parent Tata Sons are likely to be selling assets to recalibrate the Indian steel firm's balance sheet, the Economic Times reported.

To exit some of their international businesses may be one of Tata Steel's options to ease Tata Steel's debt that exceeds Rs 1 lakh crore, the paper said. Offloading shares of Tata Consultancy Services—as has been done in the past—is also one of the options, the report quoted a source as saying.

The steel giant could also consider a rights issue, a move they had adopted two years ago, a source told the Economic Times.

TSE and Thyussenkrupp on Friday announced they were scrapping merger plans as European Commission's approval was unlikely. Their alliance would have created Europe's second largest steel producer after ArcelorMittal.