&w=3840&q=100)
Tata Steel begins Port Talbot EAF project as UK backs £500-mn investment
To mark this milestone for Tata Steel and British steelmaking, Tata Group Chairman Natarajan Chandrasekaran will be joined by UK government ministers at a groundbreaking event scheduled for later on Monday.
Chandrasekaran will be flanked by Tata Steel Chief Executive Officer and Managing Director T V Narendran, and Tata Steel UK Chief Executive Officer Rajesh Nair, as they officially break the ground with spades, launching the construction of the UK's largest low-carbon steelmaking facility and marking a shift away from traditional blast furnaces.
Government support and job impact
The development is part of a £1.25-billion transformation towards low-carbon steelmaking, supported by a £500-million investment from the UK government.
The transition secures 5,000 jobs across Tata Steel UK, even as the closure of heavy-end assets is expected to impact 2,500 positions.
Leadership emphasises sustainability and partnership
In a statement ahead of the ceremony, Chandrasekaran said: 'This is an important day for Tata Group, Tata Steel and for the UK. Today's groundbreaking marks not just the beginning of a new electric arc furnace, but a new era for sustainable manufacturing in Britain.'
'At Port Talbot, we are building the foundations of a cleaner, greener future, supporting jobs, driving innovation, and demonstrating our commitment to responsible industry leadership. This project is also part of Tata Group's wider investment in the UK, across steel, automotive, and technology among others, which reflects our deep and enduring partnership with this country,' he added.
UK government hails strategic shift in steelmaking
Business Secretary Jonathan Reynolds said, 'This is our Industrial Strategy in action and is great news for Welsh steelmaking, backing this crucial Welsh industry, which will give certainty to local communities and thousands of local jobs for years to come.'
'This government is committed to a bright future for our steel industry, which is why we provided £500 million of funding to make this project possible,' he added.
Secretary of State for Wales Jo Stevens said: 'The UK government acted decisively to ensure that steelmaking in Port Talbot will continue for generations to come, backing Tata Steel with £500 million to secure its future in the town, along with £80 million to support workers and the wider community.'
'Our Steel Strategy will also deliver £2.5 billion of investment to rebuild the UK industry, maintain jobs and drive growth,' Stevens added.
First Minister Eluned Morgan said: 'The start of the construction phase is good news for Port Talbot and neighbouring communities, and I'm especially pleased that Tata has committed to employing local contractors and local workers where it can.'
Mixed reactions as union calls day 'bittersweet'
Steelworkers' union Community described the development as a 'bittersweet' day. In a statement, Community Assistant General Secretary Alasdair McDiarmid said: 'This bittersweet day is a consequence of the devastating closure of the blast furnaces, but importantly, a future for Port Talbot steelmaking is being secured. The workforce needs the electric arc furnace project to be both a success and a turning point, and we look forward to playing our part to get the new furnace up and running.'
Broader decarbonisation strategy and supply chain
As part of Tata Steel UK's broader decarbonisation strategy, the project will also include new ladle metallurgy facilities, infrastructure upgrades, and collaborations with technology providers such as Tenova, ABB, and Clecim.
The construction is being led by main contractor Robert McAlpine, supported by a strong regional supply chain that includes Darlow Lloyd & Sons, Mii, Skelton Thomas, Wernick Buildings, Andrew Scott Ltd, and Systems Group, the company said.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)

Business Standard
20 minutes ago
- Business Standard
UK cos can offer telecom services in India without local office under CETA
Companies from the UK will be able to offer services in sectors such as telecom, and construction in India without setting up a local presence, under the free trade agreement signed between the two countries. The British firms will be treated on par with Indian firms. The Comprehensive Economic and Trade Agreement (CETA) was signed on July 24 in London. It may take about a year for items implementation as the free trade pact needs approval from the British Parliament. "UK companies can now provide telecom, construction, and related services in India without establishing a local presence, enjoying full national treatment, meaning they will be treated on par with Indian firms," the commerce ministry said. Services is a key chapter in the agreement as both countries are strong in different kinds of services. India enjoys a trade surplus of around $6.6 billion with the UK. The country's services exports stood at $19.8 billion and imports at $13.2 billion. In the agreement, the UK has provided a comprehensive and deep market access in 137 sub-sectors to Indian firms. On the Indian side, commitments have been extended in 108 sub-sectors, granting UK firms access to domains like accounting, auditing, financial services (with FDI capped at 74 per cent), telecom (100 per cent FDI allowed), environmental services, and auxiliary air transport services, it said.


Time of India
an hour ago
- Time of India
India-UK trade deal: British firms get telecom, construction access; no local office needed in India
India-UK Trade Deal (AI image) The recently signed free trade agreement between India and the United Kingdom will allow British companies to deliver services like telecom and construction within India without the need to establish a base in the country. As per news agency PTI, these firms will receive national treatment, meaning they'll be treated at par with Indian service providers. The deal, officially called the Comprehensive Economic and Trade Agreement (CETA), was signed in London on Thursday. However, it may take up to a year to be fully implemented, as it awaits approval from the UK Parliament. The services chapter is considered a key part of the pact, given the strengths both countries hold in the sector. According to the commerce ministry, the UK has agreed to provide wide-ranging market access in 137 service sub-sectors, while India has reciprocated with commitments in 108. These cover areas such as accounting, auditing, financial services (with 74 per cent FDI cap), telecom (with 100 per cent FDI permitted), environmental services, and auxiliary air transport services. India currently enjoys a trade surplus of around $6.6 billion with the UK. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Pirates Climb Aboard Cargo Ship - Watch What The Captain Did Next Tips and Tricks Undo Its services exports were valued at $19.8 billion, while imports stood at $13.2 billion. As per PTI, commerce and industry minister Piyush Goyal said the agreement has safeguarded India's sensitive sectors like dairy, rice, and sugar. He said, 'Zero compromise and extensive benefits make it a phenomenal free trade agreement.' He also emphasised that the pact opens the door for India to engage more deeply with the developed world. Goyal noted that the FTA would be particularly helpful for labour-intensive sectors such as textiles, footwear, and gems and jewellery. Additionally, the deal includes a social security arrangement that will benefit Indian professionals on short-term contracts in the UK, allowing them to pay into India's provident fund instead of losing a chunk of their earnings to UK's national insurance contributions. He also clarified that legal services have been excluded from the scope of this agreement. Although the deal opens up India's automobile sector, Goyal said this had been done in an 'intelligent' manner to ensure India's interests are protected. He plans to hold consultations with various industries and travel to states to spread awareness about the benefits of the agreement. The India-UK trade deal, Goyal said, could set a benchmark for future free trade agreements, as it balances protection for local sectors with expanded access to high-quality foreign goods and services. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now


Hindustan Times
an hour ago
- Hindustan Times
UK FTA is a turning point in how India engages with West
The signing of the free trade agreement (FTA) between India and the UK last week was no ordinary moment — not just because 99% of Indian exports to the UK will now enter tariff-free, or because British luxury cars and Scotch whisky are about to get cheaper. The real story is India's evolving place in global trade — more assertive, more selective and no longer willing to play by someone else's rulebook. The immediate economic benefits are eye-catching. For British exporters, tariff cuts on whisky (down from 150% to 75% right away, and to 40% in a decade), high-end vehicles, cosmetics and dairy offer new access to India's swelling consumer base. For Indian exporters — particularly in textiles, jewellery, EVs, marine products and generics — the UK market is now wide open, with tariff advantages over rivals like China and Vietnam. The UK's access to Indian public procurement markets and its offer to exempt Indian professionals from social security payments sweeten the deal further. Also, Indian yoga teachers, chefs and tech workers will find short-term visas easier to secure— a meaningful breakthrough on the politically sensitive issue of mobility and immigration India's MSMEs are expected to be among the biggest winners. Industry analysts estimate a 30-40% rise in Indian exports to Britain in the next five years. That's not just numbers on paper — that's jobs on the ground, especially in states like Gujarat, Tamil Nadu and Maharashtra. But perhaps the most significant thing about this deal is what isn't in it — agriculture. India drew a red line, clearly flagging at the outset that it's non-negotiable, which the UK respected. Our government is fully aware of our responsibility to protect the rights of our farmers. Opening up Indian farming to global agribusiness is politically radioactive. The UK agreement avoids that minefield. This signals something larger: India is happy to do trade, but only on terms that don't destabilise our broader economic progress. This new pragmatism — open on industry, cautious on food — could now become the blueprint for other negotiations, particularly with the ongoing one with the US. Hours after the India-UK deal was inked, eyes turned to the US. Trade talks with the US have been ongoing for some months. On Thursday, India's ministry of external affairs confirmed that both sides are working on the 'first tranche' of a multi-sector Bilateral Trade Agreement (BTA). Behind the scenes, pressure is mounting. After reimposing 10% reciprocal tariffs on global exports in April 2025, the US specifically slapped a 26% tariff on Indian goods, though a pause was granted till August 1. That ticking clock now adds urgency to the ongoing BTA talks. Here's the sticking point: The US wants access to India's agriculture and digital markets. India, meanwhile, wants tariff rollbacks, supply chain integration and protection for its strategic sectors. The Union government is clear: India will negotiate hard and the US should not mistake flexibility for submission. The UK deal becomes a silent message to the US: We're open to trade but we won't be bullied. The UK FTA also shifts the geopolitical axis slightly. Post-Brexit, Britain badly needed a big trade deal. India, flush with economic confidence and global attention, was in no rush. That power asymmetry is visible in the final text of the agreement— cautious, layered, incremental. This is not a one-shot silver bullet. It's a living document, built to expand, revise tariffs and add new sectors over time if required. For India, the pact also sends signals elsewhere, to the EU, Japan and Asean. In July alone, the US concluded trade deals with Vietnam, Japan and Indonesia — all part of its Indo-Pacific economic strategy. India, however, is forging its own path. It's building a trade perimeter that keeps sovereignty intact while enabling access and investment. There is, of course, no escaping the historical undertones. Two centuries ago, Britain came to India in the name of trade and stayed to conquer and rule. Today, Britain is back, but on an even keel. That reversal is more than symbolic. Indian policymakers, once wary of the term free trade because of its colonial baggage, are now redefining it. The FTA is not about deference, it's about mutual interest. India is opening doors, but it's also setting terms. This is more than a trade agreement. It is a shift in posture. It is a turning point in how India engages with the West. Gone is the tentative, aid-seeking India of old. This is a country that brings its own terms to the table, and expects others to adapt. The British see this deal as a lifeline in a post-EU economy. India sees it as leverage, a card it can play while negotiating with bigger economies like the US and EU. Undoubtedly, this trade deal is historic. Not just for what it delivers, but for what it represents — the arrival of a more assertive, strategic, and self-confident India on the global trade stage. As for the Americans, they would be wise to study the UK deal not as a template to copy, but perhaps as a warning. Push too hard, especially on food and data, and India will simply say no. Syed Zafar Islam is a national spokesperson of the BJP and former member of Parliament. The views expressed are personal