In an attempt to ease growing tensions ahead of a key board meeting of Tata Sons, chairman N. Chandrasekaran will make a detailed presentation on May 26 outlining the capital expenditure and turnaround roadmap of the group’s new-age businesses, including Air India, Tata Electronics, Tata Digital and its battery manufacturing ventures.

The presentation will be made to the board members of Tata Sons, including Noel Tata, and is aimed at giving directors greater clarity on the direction and financial trajectory of the subsidiaries under Tata Sons, sources familiar with the matter said.

The Tata Sons board meeting scheduled for June 12 to approve annual accounts and discuss other sensitive structural issues will proceed as planned, despite visible divisions within the boards of Tata Sons and Tata Trusts.

According to sources, the May 26 presentation is intended to address concerns around mounting losses and rising debt across the group’s newer businesses. “The presentation is mainly for giving clarity on the turnaround plans of the companies under Tata Sons. It will provide visibility on the path to recovery of these businesses,” a source said.

The move follows concerns raised by Noel Tata during the previous Tata Sons board meeting held in February. Noel Tata is understood to have sought detailed explanations from Chandrasekaran on three major issues, including the financial performance of the group’s new ventures and the increasing debt burden being taken on to fund losses and expansion.

During the meeting, Noel Tata reportedly cautioned that the fresh borrowing by Tata Sons could eventually compel the holding company to pursue an initial public offering under Reserve Bank of India guidelines applicable to upper-layer non-banking financial companies. His remarks triggered extensive discussions among directors over the future financial direction of the group’s emerging businesses.

Last year, the board of Tata Trusts, while approving another term for Chandrasekaran, had also asked the Tata Sons chairman to engage with the RBI and ensure compliance with regulatory requirements related to exiting the upper-layer NBFC classification.

Noel Tata has consistently maintained that Tata Sons should remain privately held, arguing that a public listing could expose the group’s long-term strategic and philanthropic priorities to external shareholder pressures. The late Ratan Tata had also held similar views on keeping Tata Sons unlisted.

Apart from Noel Tata, Venu Srinivasan represents Tata Trusts on the Tata Sons board. Tata Trusts continues to hold significant influence in the holding company’s decision-making process through the nominee directors.

Differences also surfaced over Chandrasekaran’s proposed third term as chairman of Tata Sons. Sources said Noel Tata had raised objections to the reappointment during the last board meeting, despite the Tata Trusts board having already passed a resolution supporting another term for Chandrasekaran. The Tata Sons board ultimately deferred the matter without putting it to vote.