Tata has dropped its request for £800 million of Government funding for its Jaguar and Land Rover brands after the Indian-based company secured a commercial bank to guarantee a £340m loan from the European Investment Bank.
The manufacturer first requested state aid last September.
However, Tata's chairman, Ratan Tata, wrote to the Government this morning to say that it expected a commercial bank soon to provide the guarantee for the bigger loan while short-term agreements were close to being secured without a government guarantee.
In a statement, Tata said that many of its recent negotiations on funding facilities, "have been successfully concluded in the last few months and the balance is expected to be completed in the coming weeks".
It added: "Tata Motors and Jaguar Land Rover also expect that the long-term loan from the European Investment Bank (EIB) of £340 million, sanctioned to Jaguar Land Rover, can also be successfully secured in the coming weeks through appropriate commercial arrangements."