Complex sentence: The Raj did not provide capital, but aware of Britain's declining position against the U.S. and Germany in the steel industry, it wanted steel mills in India so it is did promise to purchase any surplus steel Tata could not otherwise sell.
Split into simpler sentences: The Raj did not provide capital, but, aware of Britain's declining position against the U.S. and Germany in the steel industry, it wanted steel mills in India. It promised to purchase any surplus steel Tata could not otherwise sell.