Tata Motors reported that it might slash more than Rs 50,000 crore from its previously estimated capital expenditure on the Jaguar Land Rover unit and India operations for over three years. By doing so, the company aims to wipe-off debt from its balance sheet.

Earlier last year, the company had guided for a CAPEX of 4 billion pounds (nearly around Rs 37,600 crore) in each of the next three years at Jaguar Land Rover unit. Tata Motors has spent around Rs 4,500 crore on an average every year for its standalone India business, which has been brought down to 2.5 billion pounds at JLR unit and Rs 1,500 crore for the current fiscal year.

Recently, the company’s indication to investors and analyst comments suggest that it would continue with similar CAPEX and over three years, it would translate into a reduction of over Rs 42,000 crore at JLR unit and Rs 9,000 crore in India.

British luxury-vehicle unit, JLR had reported a cash burn of 1.51 billion pounds in the June quarter of the FY21, mainly due to the meeting of higher working capital requirement. The debt of the company rose to 6.56 billion pounds at the quarter ended in June 2020, as compared to 5.88 billion pounds in FY20. The company has witnessed some green shoots for its passenger vehicles and JLR unit; recovery in the marketplace is the biggest that will determine its success.