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It looks like UK PLC may soon be doing business with Ratan Tata.

A line hidden way into Alistair Darling's budget announced "a £40 million research, development and demonstration programme, which will focus on low-carbon vehicle concepts and the acceleration of their commercialisation."

The chancellor also recommended a new research, development and demonstration programme between the UK and India to develop a ‘low-cost, low-emission’ car. "The UK Government has today written to the Indian Government seeking their support for a collaborative programme."

I think it's great news. Let's just hope that, whatever they wrote, they didn't send it by Royal Mail.