SBI to take call on Adani’s $1bn loan for Carmichael Coal Project

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Image credit: www.adaniaustralia.com.au

Last year, India issued a $1 billion loan for Adani Group‘s Carmichael Coal Project in Queensland, Australia. Adani Mining, the Australian subsidiary of Adani Enterprises and the State Bank of India (SBI), the country’s largest lender, signed a Memorandum of Understanding (MoU) in November 2014.

Image credit: www.adaniaustralia.com.au
Image credit: www.adaniaustralia.com.au

Current reports reveal that SBI is in the process of completing the due diligence for the controversial $1 billion loan and is to take a final call on it soon.

The coal project received the necessary regulatory approvals by the Queensland Government during Prime Minister Narendra Modi’s visit to Australia for the G-20 Heads of State summit.

The Queensland Government also committed to help fund the 388 km railway line which would connect the coal mine to Abbot Point port near the Great Barrier Reef.

Deputy Premier of Queensland, Jeff Seeney, said that the state did not have any environmental concerns with the project.

After many controversies, Arundhati Bhattacharya, Chairwoman of State Bank of India, defended the $1 billion loan that the country’s largest lender issued for Adani Group‘s Carmichael Coal Project.

It is said that the final decision on the Adani issue will be taken by the executive committee after due deliberations.

Adani Mining is currently building a 300-km rail line for the USD$16 billion Carmichael coal mine project.

The total cost of the development of the coal mine and the required infrastructure, including railways, is estimated to cost around USD$7.6 billion.

The mine, rail and port project are to be built by the end of 2017.