LONDON (Reuters) -- Tata Motors Ltd. has secured a 175 million pound ($289 million) private sector loan for its luxury unit Jaguar Land Rover and no longer needs financial support from Britain, a U.K. government spokesman said today.

The Department of Business, Enterprise and Regulatory Reform (BERR) has been holding talks with India's Tata and Jaguar Land Rover on guaranteeing both short- and long-term financing.

The media quoted industry experts in May as saying the talks were stalled because the carmaker would not accept the tough conditions imposed by Britain in return for guaranteeing a loan. One of the terms was the right of the government to veto management decisions at the British brands.

The talks centered on a rescue package that involved a European Investment Bank loan of 340 million pounds, to be used for the development of environmental technologies, plus 450 million pounds from British banks and underwritten by the government.

The core British operations of Jaguar Land Rover swung to a net loss of 673.4 million pounds ($1.11 billion) last year from a net profit of 641.5 million pounds in 2007, according to accounts filed to the British financial authorities, the Financial Times reported last month.

Future models

BERR said on Tuesday that Tata had secured private sector funding for the company's short-term financial needs.

"This additional funding will allow JLR to invest in future models and successfully launch the new XJ on schedule and updated Land Rover models later this year," Business Secretary Peter Mandelson said in a statement.

"The government had offered bridging finance from the automotive assistance program if necessary. We understand the Tata group will now be successful in resolving longer-term financial needs, but we are willing to help again if necessary."

Britain pledged in January to guarantee up to 2.3 billion pounds of loans, including 1.3 billion pounds from the EIB, to help its ailing car industry cope with a slump in demand.

More than 14,000 workers are employed at Jaguar Land Rover's five British sites.

Tata bought Jaguar and Land Rover from Ford Motor Co. in June last year for about $2.3 billion.