Indias largest industrial conglomerate the Tata Group has introduced a significant shift in its longstanding tradition after the passing of former chairman Ratan Tata. The company has decided to move away from its historical business practices and move towards a new operational model distinct from Ratan Tatas legacy approach. As part of this change Tata Group has instructed its companies to independently manage their debts and liabilities. According to a report by The Economic Times Tata Sons the holding company of the group has specifically asked newer ventures such as Tata Digital Tata Electronics and Air India to handle their financial obligations independently. The companies have been directed to discontinue practices like providing comfort letters and cross-default clauses to lenders. Tata’s Independent Financial Management  In line with this new approach Tata Sons has informed banks that the group will no longer offer comfort letters or cross-default clauses. Moving forward capital allocation for new ventures will be managed through equity investments and internal resources. Tata Sons clarified to lenders that within each business category the leading listed company will act as the holding entity ensuring operational and financial autonomy. Loan Repayment and Equity Funding Focus Last year Tata Sons voluntarily surrendered its registration certificate with the Reserve Bank of India (RBI) and paid off loans exceeding Rs 20000 crore to remain unlisted. It is anticipated that funding for new businesses will primarily be sourced from Tata Consultancy Services (TCS). Dividend payouts and support from TCS are expected to play a critical role in financing the group’s ventures going forward. Minimal Impact On Listed Companies This decision by Tata Sons is not expected to significantly impact the group’s listed entities such as Tata Steel Tata Motors Tata Power and Tata Consumer Products as these companies already manage their capital independently. However the move may influence holding companies where Tata Sons holds a significant stake. Banks have traditionally extended loans to these companies based on Tatas substantial equity stake even without explicit guarantees. By leveraging its leading subsidiaries and focusing on internal equity resources the conglomerate aims to enhance efficiency and sustainability in its future endeavors.