Tata Motors has bought Jaguar and Land Rover for USD 2.3 billion. The Tatas now own 100% in JLR, which is to be operated as Tata Motors' subsidiaries.

The company's management said it is raising bridge finance from a syndicate of banks. "We also tied-up USD 3 billion as bridge finance which is to be replaced by debt and equity."

India's largest automaker also plans to divest stake in group companies to finance the JLR buyout, they said.

According to the management, Ford will provide financing for 12 months. "We are in discussions with vehicle financing companies in the UK, Europe, and US."

Geoff Polities has agreed to continue as CEO, Jaguar-Land Rover, the management said.

The company has signed sales and purchase agreements, the approvals of which are expected in a few months, they added.

Ravi Kant, MD, Tata Motors said they don't have pension liabilities. He added that Ford is making the payment and will make sure that the pension deficit is covered.  

Excerpts from  CNBC-TV18's exclusive interview with Ravi Kant:

Q: You have agreed to pay USD 2.3 billion for both these brands. What is the addition of funding liability that you have, as far as pension liabilities are concerned?

A: We don’t have pension liabilities because Ford has closed pension of USD 600 million. Therefore, going forward, whatever the liabilities that we will see as on-going concern.

Q: What is the pension deficit right now? We understand that earlier it was a higher figure that has been brought down now.

A: Ford is making the payment and will make sure that the deficit is covered up.

Q: Apart from the USD 2.3 billion, is there any additional funding as far as Jaguar and Land Rover and the future models are concerned?

A: It is all of part of the business plan and will be considered. There is no extra funding required for that.