The India giant Tata Steel is selling its plant in Britain. The move will cut thousands of jobs. The British government is finding ways to handle the situation.

Tata Steel has put up its British operations for sale as it battles an economic slowdown and competition from China. The move will put thousands of jobs at risk.

The latest development also comes at a time when uncertainty persists over British economy ahead of the referendum in June to decide whether Britain should stay in the European Union or not.

Tata Steel is the second largest steelmaker in Europe. It entered the market after buying steel giant corus in 2007 for more than 14 billion dollars. The company has decided to "explore all options for portfolio restructuring including the potential divestment of Tata Steel UK, in whole or in parts".

The move puts thousands of jobs at risk. Tata's British business employs about 15,000 workers, including 4,000 at Port Talbot, the country's biggest steelworks. Tata's Port Talbot site alone, which employs 5,500 people, is estimated to be losing 1 million pounds a day.

The British government is looking at various options to salvage the situation.

The global steel industry has seen some serious downward spiral because of the economic downturn in Europe and the US coupled with excess capacity in China.

Tata Steel UK’s sale doesn’t just impact jobs, it also will impact the larger supply issues in Europe of steel.

Reacting to Tata Steel move in the UK, the scrip closed 6.75 per cent up on Wednesday on the Bombay Stock Exchange.