Tata Sons directs group firms to manage debts, liabilities independently: Report

Tata Sons has asked all its group companies, particularly the new-age businesses, to manage their debts and liabilities on their own.

The move will lead to the discontinuation of the practice of the Tata group holding company backing its group businesses through its letters of comfort and cross-default clauses to lenders, the report cited sources as saying.

All new capital infusion into these companies will be through equity investments and internal accruals, the report said. New funding will come from dividends and support from Tata Consultancy Services (TCS), which is the biggest listed firm in the group.

Tata Sons has offered to provide an undertaking in the form of a board resolution to not access public funds as part of its application seeking to declassify itself as an “upper layer NBFC” and core investment company to avoid a listing on bourses by 2025.