Dutch government offers Tata Steel subsidies on pollution cut condition

The Dutch government has expressed its willingness to provide subsidies to Tata Steel on the condition of the company to accelerate plans for drastically curtailing pollution at its large plant in IJmuiden.

Tata's factory in IJmuiden on the Dutch coast west of Amsterdam is one of the largest emitters of greenhouse gases in the Netherlands.

According to recent research, it has also been found responsible for a range of health issues in the region.

Last year, the salts to steel conglomerate presented a plan for cleaning up the plant by replacing its blast furnace with a cleaner installation and closing down its most polluting coke factory by 2029.

However, Tata said it would need subsidies for being able to realise this.

In the latest development, the government said it intends to reach an agreement with Tata Steel at short notice, provided the company could step up on its plans.

"This option would rapidly improve circumstances for people living nearby and reduce CO2 emissions, while preserving employment and the economic and strategic value of steel production," the economy ministry said in a statement.

Tata Steel Netherlands director Hans van den Berg told news agency ANP he was content with the government support being meted, but added that discussions on a possible agreement still needed to take place.

The company's UK subsidiary last week on March 18 took a call to cease operations of the coke ovens at its Port Talbot plant in Wales.

(With Reuters Inputs)