Reliance Power has won a $900 million loan from the United States Export-Import Bank for the purpose of building a coal-fired power plant in India
USEIB reportedly reversed an earlier decision to reject the financing request when its Board of Directors unanimously voted to approve the loan for the 3,960 megawatt Sasan power plant in Madhya Pradesh.
According to reports the USEIB’s earlier refusal to finance the project stemmed from criticism of the power plant by environmental groups, which argued that the project would elevate carbon dioxide emissions levels and contribute to global warming.
Although financing decision had been made, reports said, approval for the project would still have to be obtained from the U.S. Congress.
Yet the bank’s President Fred Hochberg expressed optimism, saying in a earlier statement, “We are pleased that Reliance is making this commitment to renewable energy, which allows us to sustain U.S. jobs and promote both conventional and renewable energy exports.” The company further noted that this project was the largest funding supported by USEIB to any Indian corporation.
In terms of the purpose of the loan USEIB said that Reliance Power would use the loan guarantee to “support the sale and export by Wisconsin-based Bucyrus International of mining equipment.”