The tug-of-war is continuing between the British government and Tata Motors over the terms and conditions of the sanction of loans by the U. K. government to the Tata's Jaguar Land Rover.

Business secretary Lord Mandelson has agreed to simplify some terms and conditions regarding loans and advised Tata Motors to accept the revised offer of the U. K. government.

Speaking on the topic, Lord Mandelson said, "Having been told there was great urgency, we have made proposals and offers and now we are waiting for a response."

On the other, Tata Motors is pressing the U. K. government for further concessions and accused the government of dragging its feet on industry support.

The loan worth ten-million pound is from the European Investment Bank and is urgently required by the Tata's luxury car, Jaguar Land Rover that has been making huge losses due to economic downturn.

Tata wishes to put a limit to government's involvement in the plant while Lord Mandelson is seeking power over the business to the maximum.

Tata's Jaguar Land Rover has already announced 300 jobs would be lost at the Halewood plant in case the company decides to close production of the X Type Jaguar.