Tata Motors has threatened to scrap its plan to launch the electric Indica Vista in the UK if it does not receive a 10 million pounds loan from Jaguar and Land Rover deal the British government soon. In April, Tata Motors registered its expression of interest to apply for the 10 million pounds loan to help launch the electric Tata Indica Vista, which was unveiled at the Geneva Motors Show this year, and build an assembly line for it in the UK.

The company is furious after being told by officials from (Secretary of State for Business, Innovation and Skills) Lord Peter Mandelson’s business department that it needed more time to find out if the venture will be considered for the loan, taking the total wait to six months. But last Tuesday, the company was told that it will take another eight weeks for the business department to decide whether it had met the necessary criteria and can be considered for the loan. No money has been released by the government from its 2.3 billion pounds package, which it unveiled in January. The package is made up of loan guarantees and loans for car makers wanting to invest in fuel efficient technologies.