Reliance Power (R-Power) has managed to get a change of mind from the Export-Import Bank of the US (Ex-Im Bank), on the latter’s decision just three weeks earlier to refuse finance for the Sasan ultra mega power project in Madhya Pradesh.
It has got it by doing two things. One, a promise to put up a 250-Mw renewable enery unit somewhere in India. Two, to source mining equipment for the 3,960-Mw coal-fired Sasan project from a US-based company, with the Ex-Im Bank financing this.
The Bank board had, on June 24, voted not to proceed with further review of the application for the Sasan project, based on environmental concerns. The project will emit 26,000-27,000 tonnes of carbon dioxide yearly.
Today, R-Power, part of the Anil Dhirubhai Ambani Group, signed a memorandum of understanding (MoU) with the Ex-Im Bank to put up a 250-Mw renewable energy facility. Also, for the Bank to provide a $600-million loan guarantee to support the sale and export by Bucyrus International, located in Wisconsin, of mining equipment to Sasan.
Resulting in this statement from the Bank: “The board of directors of the ExIm Bank today approved proceeding to a full financial, technical and environmental review of an application for financing of US exports to India’s Sasan coal-fired power plant. The application is still subject to final review and approval.”
