US lawmakers urge Exim Bank to reconsider financing decision on Reliance project

30 Jun 2010

The Exim Bank of US came under fire from two influential Republican lawmakers yesterday for its decision against financing Reliance Power's ultra mega power project in Sasan, Madhya Pradesh.

The bank decided against financing the project last week on environmental grounds.

A three-member team board of the bank under chairman Fred Hichberg voted two to one against financing the project.

The emissions from the plant are estimated at around 26,000-27,000 tonnes of carbon per annum.

In a letter to the bank's chairman, Congressmen Jim Sensenbrenner and Paul Ryan said the US Exim Bank should concern itself more with jobs rather than environmental issues and reverse its recent decision against extension of loan guarantees to an Indian power plant that planned to make a significant equipment purchase from a Wisconsin company.

"With the national unemployment rate continuing to hover close to 10 per cent, all steps should be taken to reinvigorate the economy and bring jobs to the United States," the letter to Hichberg said.