New Delhi: Tata Steel announced on Monday that they are assessing the British government's investment plans for the Steel industry. Reports suggest that UK Chancellor Jeremy Hunt is nearing a deal to provide an estimated 600 million pounds in aid to both British Steel and Tata Steel UK to fund the transition to green technology.

The Tata Steel subsidiary, which owns the renowned Port Talbot Steelworks in Wales, is set to receive around 300 million pounds of this funding to equip its operations with green furnaces.

Tata Steel warned that they could be forced to shut down their UK operations if they do not get help with transitioning to more sustainable and less carbon-intensive Steel production.

"We have received communication from the UK government in relation to a framework for the continuity and decarbonization of Steel making in the UK," a Tata Steel spokesperson stated.

"We are studying it and will consider it carefully prior to strategic decisions on the future of our UK business," the spokesperson stated.

The government is taking action to safeguard the livelihoods of thousands of people in Britain's manufacturing hubs, with Tata Steel being a major employer responsible for 8,000 jobs in the UK.

The Department for Business, Energy and Industrial Strategy is collaborating with the Steel industry to ensure “a sustainable and competitive future".

The government has taken steps to support the use of blast furnaces in Steel production. However, this method is highly polluting, producing large amounts of CO2 - a major contributor to climate change. This places the UK in a difficult position with regards to its commitment to reduce carbon emissions substantially by law.

Last week, the Unite workers' union sent a letter to Business Secretary Grant Shapps warning of potential large-scale job losses in the Steel industry if no action is taken.

"With little meaningful action on the part of government in areas of UK procurement policy, energy pricing support, green energy generation or support for investment in new plant and technologies, the industry is at breaking point," Steve Turner, Unite's assistant general secretary, wrote in his letter.

"We are, in the words of many, 'a whisker away from collapse'," he notified Any government support package is expected to be contingent upon pledges of investment from the Steel companies and a guarantee that their plants will remain operational until at least 2030.