ONE of India’s leading businesses, Tata, has submitted an application to the government for financial assistance in setting up a high-tech research and development centre in the Midlands. It is understood to be considering using a former Marconi site near Coventry.

The R&D centre would do work for Tata Motors, its car and truck-making arm, Tata Consultancy Services, its IT division, and possibly for the merged Tata Steel/Corus group.

Ratan Tata, the firm’s patriarch, has been weighing up a number of possible locations in Europe, with Italy and Germany understood to have been under consideration.

It is not clear whether Tata has finally settled on the UK, but it is understood that an application for a regional-assistance grant was lodged with the Department of Trade and Industry (DTI) last week. Tata and the DTI declined to comment.

Tata Motors already has a relationship with nearby Warwick Manufacturing Group, the respected business school and manufacturing centre based at Warwick University.

It is thought the Tata centre could eventually create 1,000 jobs. Ratan Tata is thought to have been impressed by the expertise in the UK, particularly in the automotive industry.

That part of the centre would be likely to concentrate on styling and engine and gearbox development.

Tata Motors had an unhappy first foray into the UK motor industry in 2002 when it struck a distribution deal with MG Rover for its cars produced in India. MG Rover collapsed into administration last year.

Tata on Friday took a step closer to the takeover of Corus, the Anglo-Dutch steelmaker that includes the rump of British Steel, with the publication of its offer document. Tata is offering 455p per share, which values Corus at £4.3 billion. The document sets out a timetable for the deal which should see it proceed, if approved, on December 4.