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15 Apr 2021, 08:13 HRS IST
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Source:Export-Import Bank of the United States
Category:Business and Finance
Ex-Im Bank Approves Preliminary Review of Export Financing Application for India's Sasan Power Plant
15/07/2010

Ex-Im Bank Approves Preliminary Review of Export Financing Application for India''s Sasan Power Plant

WASHINGTON, July 15 /PRNewswire-AsiaNet/ -

    The Board of Directors of the Export-Import Bank of the United States 
(Ex-Im) today approved proceeding to a full financial, technical and 
environmental review of an application for financing of U.S. exports to India's 
Sasan coal-fired power plant. The application is still subject to final review 
and approval.

    On June 24th, the Board voted not to proceed with further review of the 
application for the Sasan project, based on environmental concerns. Subsequent 
to that vote, Reliance Power has executed a memorandum of understanding (MOU) 
with Ex-Im indicating Reliance's intent to develop a new 250 megawatt renewable 
energy facility, which when built will rank among the largest renewable energy 
projects in India.

    The proposed $600 million Ex-Im loan guarantee will support the sale and 
export by Bucyrus International, Inc., located in Milwaukee, Wisc., of mining 
equipment to Sasan Power Ltd. for the 3,960 MW power plant in Madhya Pradesh, 
India. This proposed transaction for the Sasan project would support hundreds 
of jobs at Bucyrus and its sub-suppliers.

    Today the Board reviewed new information about the project's CO2 emissions, 
which Reliance has agreed to cap at 850 grams of CO2 per kilowatt hour. Ex-Im 
also reviewed information about the effects of Ex-Im financing on U.S. energy 
exports and related employment. This data, along with the executed MOU with 
Reliance, led the Board to conclude that a full review of the project should 
proceed.

    This vote paves the way for a full financial, technical and environmental 
due diligence process. Following that, the Board will vote on whether to 
approve the application.

    "We are pleased that Reliance is making this commitment to renewable 
energy, which allows us to sustain U.S. jobs and promote both conventional and 
renewable energy exports," said Ex-Im Bank Chairman and President Fred P. 
Hochberg.

    Chairman Hochberg also noted that, "this transaction was also made possible 
because of Anil Ambani's leadership and vision in diversifying Reliance Power's 
production portfolio of energy projects in India. Reliance Power's efforts will 
benefit the people of India and Ex-Im's efforts will benefit U.S. energy 
exporters."

    Ex-Im, an independent, self-sustaining federal-government agency, provides 
export financing which strengthens U.S. export competitiveness, and helps 
create and maintain U.S. jobs. The Bank provides a variety of financing 
mechanisms, including working capital guarantees to help small and medium-sized 
U.S. businesses, export-credit insurance to protect against nonpayment by 
foreign buyers, and loan guarantees and direct loans to assist foreign buyers 
of U.S. goods and services.

    In fiscal 2009, Ex-Im financing totaled $21 billion, and of that, 
small-business export financing reached $4.4 billion, nearly 21 percent of 
total authorizations.

    In the first nine months of fiscal year 2010, the Bank authorized more than 
$17.4 billion in loans, guarantees and insurance - more than the total amount 
authorized in all of fiscal 2008. Small business authorizations to date this 
fiscal year totaled $3.2 billion. Ex-Im Bank financing has supported an 
estimated 150,000 U.S. jobs to date this fiscal year. For more information, see 
Ex-Im Bank's Web site at http://www.exim.gov.




    
CONTACT:
CONTACT: Phil Cogan of Export-Import Bank of the United States, +1-202-565-3200
Media contact details:
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