Tata Steel is in advanced stages of negotiations with the UK government to secure approximately 500 million pounds in government-backed funding, aimed at safeguarding the future of its Port Talbot facility in South Wales.

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This impending agreement between the government and Tata Steel is poised to ensure the continuity of operations at the United Kingdom's largest steelworks.

Sources have informed Sky News that Whitehall officials are engaged in preliminary discussions regarding a financial support package. This package aims to provide assistance to Tata Steel employees who may face redundancy as the Port Talbot plant undergoes a transformation from conventional blast furnace operations to environment-friendly steel production.

According to the news report, both the government and the India-based company are optimistic about finalising the deal as early as the end of this week, though they acknowledge that the timeline could still see adjustments.

Under the terms of the agreement, Tata Steel will receive financial aid amounting to approximately 500 million pounds, with the company itself expected to allocate around 700 million pounds for modernising the Port Talbot plant.

During the earlier stages of negotiations, Tata Steel had sought a more substantial sum from British taxpayers.

Port Talbot currently employs about 4,000 individuals, constituting roughly half of Tata Steel's entire UK workforce. The company has indicated that, even with government financial support, as many as 3,000 of its UK-based employees could face job losses.

The agreement with the government includes a commitment from Tata Steel to construct electric arc furnaces, which employ less labour-intensive processes for steel production compared to traditional blast furnaces.

(Edited by : Shoma Bhattacharjee)