A full financial, technical and environmental review will be undertaken by the members of the U.S. Export - Import Bank before they take a vote on giving India's Reliance Power a loan. The loan worth $600 million is to finance a new coal fired power plant to be located in India.
The board had voted against the proposed loan last month. The Indian power company needs the loan to purchase coal mining equipment from Bucyrus International, Inc., headquartered in South Milwaukee, Wisconsin, USA. After the vote, Bucyrus officials warned losing the deal could result in 1,000 people in 13 states losing their jobs.
This has lead to a rethink on the loan. The bank has now agreed to reconsider the decision and a final vote will be taken after considering the plant's impact on the environment later this year. Reliance Power agreed to cap the project's emissions at 850 grams of carbon dioxide per kilowatt hour. It has also committed to develop a 250-megawatt renewable energy facility. This power plant, when built will be among the largest renewable energy projects in India.