Two Senators representing the Wisconsin State in the US have welcomed the Exim Bank’s preliminary approval to Reliance’s power project in Madhya Pradesh, saying that this would create hundreds of jobs in the US.
“We did not want to see jobs in our state jeopardised and did all we could to be effective advocates for Bucyrus International’s workforce,” Senator Herb Kohl said. The US Exim Bank’s approval for $600 million in loan guarantees for Reliance Power’s 3,960-Megawatt power project at Sasan in Madhya Pradesh will support the sale and export of equipment by Wisconsin firm Bucyrus International, for the plant.
“I am pleased the Export-Import Bank Board approved the revised proposal, and kept this deal alive,” Senator Russ Feingold said.
Early this week, the Export-Import Bank had voted to provide loan guarantees that, deal supporters say, would save jobs in Milwaukee and could allow Bucyrus to manufacture equipment for an RIL coal plant in India. This is the first in a series of three votes the Exim Bank will conduct before the Reliance-Bucyrus deal is finalised. Following the approval, there will be a vote, possibly in late August, on financial aspects of the deal. The next step would be after a 35-day period when the deal will be sent to US Congress for review, followed by a final vote by the Exim Bank board.
Hochberg notified the Senators on June 30 that the Exim Bank would reconsider its decision if Reliance could present a new proposal, including an increase in the amount of renewable energy produced in India, with a preference for American-made equipment.