US green groups have hit out at the US Exim Bank for reverting a earlier decision to deny $600 million loan guarantee to suppliers to the Rs 20,000-crore power project of Anil Ambani group firm Reliance Power (R-Power), which maintains it was abiding by the emission norms.
In a joint statement, Friends of the Earth, Pacific Environment, Oil Change International and Groundwork alleged that Export and Import Bank of US had succumbed to intense lobbying and agreed to give the loan guarantee.
The US Exim Bank had informed ADAG chief Anil Ambani earlier this month that his commitment to investing in the renewable energy sector won loan guarantee for R-Power's Sasan Power project and saved 1,000 American jobs.
Ambani, on his part had, has committed to investing in green energy and source the technology from the US, enabling Exim Bank to reconsider its decision for loan to his group's coal-fired 3,960 Mw power project at Sasan in Madhya Pradesh in India.
The statement from environmental groups came a day before the Exim Bank Board meeting, scheduled on Wednesday, for formally formally reversing its' last month decision to reject the financing on environmental grounds.
When contacted, R-Power officials said: "The project is fully compliant with the emission standards as prescribed by the US Exim Bank. Sasan's Emission's are much lower at 827 grams/KWh against the carbon emission limit of 850 grams/KWh as specified by the US Exim Bank. Hence any suggestion that the project does not meet environmental norms of US Exim Bank is incorrect and misplaced."
The reversal of the Sasan decision would set a dangerous precedent for other coal projects in the Exim Bank pipeline, including the 4,800 megawatt Kusile coal power project in South Africa, which would emit 30.5 million tonnes of carbon dioxide annually, the statement by the green groups said.
