According to a statement in the official twitter account of the French bank, "delay" in executing the project is the main reason for its opting out.
"In the context of the Alpha Coal project's delay, Societe Generale has decided, in agreement with GVK-Hancock, to suspend its mandate. The bank has therefore no involvement with the project," the Paris-based lender said.
Reacting to the announcement, GVK Hancock today said, "GVK Hancock has been working with Societe Generale on a specific element of the financing arrangements for our projects, but is not currently working on that specific work package and as such does not require their services at this time.
GVK had, in 2011, acquired 79 per cent stake in Alpha Coal and Alpha West Coal Project and 100 per cent stake in the Kevin's Corner Project, Queensland, from Hancock Coal Pty Ltd.
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These projects hold estimated reserves of about 8 billion ton and a capacity of more than 80 million ton per annum.
"Once we have finalised approvals we will then execute coal off-take agreements and work to finalise financing arrangements," Euler further said.
All three Indian firms were already financially leveraged and yet used almost entirely debt financing for their Australian acquisitions. Since then seaborne coal price has fallen more than 50 per cent, Buckley said.