Business Secretary Sajid Javid has confirmed the UK Government is set to launch a consultation on changes to pensions law as part of efforts to save Tata Steel despite being "very wary of setting a precedent".
Pension law changes are to be considered in a bid to save Tata's UK steel operations.
The government is said to be looking at ways of helping Tata to ease its pension liabilities in an effort to persuade the Indian company to abandon its planned sell-off.
First Minister Carwyn Jones, who has been with Mr Javid in Mumbai for talks with Tata, said that he was urging the Government to make legal changes.
The firm's £15 billion pension liabilities have always been seen as one of the biggest obstacles in finding a buyer for its UK assets, including the Port Talbot plant.
Potential buyers for Tata Steel's UK operation have criticized the 'confusing sales proces' the Financial Times has reported.
A shortlist of bidders for Tata Steel's remaining UK business, including those in Wales, is reportedly set to revealed.
Tata Steel which has plants at Port Talbot, Llanelli, Newport and Shotton has sold its Scunthorpe operation saving 4,000 jobs in the UK.