He said Tata would begin separate processes for its specialty steel businesses in northern England.
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The Board of Tata Steel Ltd at its meeting on Friday has chose to explore new strategies for its European businesses, including strategic collaborations through potential joint ventures.
The board of Tata Steel is also meeting on Friday to discuss the future of its British steel operations.
The would-be buyers were uncertain about the viability of Tata’s United Kingdom operations in the wake of the controversial Brexit vote, reported Bloomberg, citing several sources.
“Besides, we are also encouraging business-to-business contacts”, Sitharaman said.
Tata announced in March that it meant to sell its United Kingdom business, including Port Talbot, putting thousands of jobs at risk. Subsequently, the company started seeking bidders for the United Kingdom assets it acquired through its 2007 purchase of Corus Group Plc. for $12.9 billion.
A Government insider said that while financial support would still be available, the prospect of it becoming a direct shareholder in a merged Tata Steel European operation was becoming more remote. These assets have been making a daily loss of £1 million.
“This is part of our ongoing dialogue with Tata to maintain momentum and achieve a long-term solution for United Kingdom steelmaking”, the Department for Business, Innovation and Skills said in a statement on Wednesday.
India’s Tata Steel said on Friday it had entered discussions with industry players including Germany’s ThyssenKrupp over a possible joint venture for its European operations, as a potential alternative to selling off the United Kingdom business. These are necessary for realizing a sustainable business in the UK.
He added: “We will continue to communicate with our employees and inform and consult both works councils and trade unions as these discussions develop”.
Indian firm Tata said the sale of some facilities, including its Port Talbot plant, would be paused.
Citing formidable challenges for a turnaround, the Indian company had announced in March that it would sell its United Kingdom assets, including the troubled Port Talbot steelworks.
Mr Javid said: “There is a strong bilateral trade relationship between our two countries and I am determined that we build on this”.
“In the short term we will continue discussions with Tata about the acquisition of a number of important assets that fit well with our strategy”.
The company considered seven expressions of interest for a possible sale process and these companies were given access to extensive business information and management team presentations in order for them to progress their interest and submit refined bids.
Earlier this week, giving evidence to MPs on a House of Commons joint select committee session on the steel industry, United Kingdom minister for small business Anna Soubry said she remains confident that Tata Steel will find a buyer for its United Kingdom business, despite economic volatility triggered by the Brexit vote.
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The industry has been buckling under pressure from cheap Chinese imports and high energy costs – in a crisis which has seen thousands of British jobs lost over the past year.
