$1 bn. SBI loan for Adani to build Australian coal mine

Updated - November 16, 2021 06:47 pm IST

Published - November 17, 2014 04:47 pm IST - Melbourne

Gautam Adani, Chairman, Adani Group.

Gautam Adani, Chairman, Adani Group.

Adani Enterprises won support on Monday from the State Bank of India (SBI) and an Australian state to help it build a $7 billion coal mine, defying a slump in coal prices to 5-1/2-year lows that has stalled rival projects.

The infrastructure conglomerate, whose founder, Gautam Adani, has close ties with Prime Minister Narendra Modi, has signed a memorandum of understanding for a loan of up to $1 billion from the SBI for the mine, rail and port project, which it aims to build by end-2017.

The loan, which would be one of the largest extended by an Indian bank for an overseas project, was announced as Mr. Adani was in Brisbane with a business delegation for the G20 summit, which Mr. Modi attended over the weekend.

“The MoU with SBI is a significant milestone in the development of our Carmichael mine,” Mr. Adani said in a statement.

Mr. Adani, 52, has enjoyed a rapid rise in Indian business circles in recent years, a rise often associated with Mr. Modi, who until this year headed the government in Gujarat where Adani is based and where it has a huge coal-fired power plant.

Mr. Adani also won a commitment from the Queensland State government to take short-term, minority stakes in rail and port infrastructure needed to unlock the massive coal reserves in the untapped Galilee Basin.

Australia’s federal and Queensland governments are eager to see the mine built following the loss of more than 4,000 coal jobs over the past two years.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.