Congress questions SBI loan to Adani

5 Dariya News

New Delhi 20-Nov-2014

The Congress Thursday questioned the State Bank of India's "propriety" in giving a loan of $1 billion to the Adani group for the development of the Carmichael coal mine in Australia."When five top foreign banks declined to fund Adani's project, what was the need to loan this huge sum from the hard-earned money of the people," Congress spokesperson Ajay Maken asked while speaking to the media.He asked why the SBI was not revealing the memorandum of understanding (MoU) signed with the Adani group for the project."Prime Minister Narendra Modi appeared to be taking keen interest in promoting Adani in getting a loan of Rs.6,200 crore during his visit in which the SBI chief was also present," Maken alleged.

The SBI has reportedly decided to lend up to $1 billion to Adani Mining, the Australian subsidiary of Adani Enterprises for the Carmichael mine in Queensland, which has massive blocks of untapped coal reserves. The company aims to build the project by end of 2017.The loan as and when it is extended would be one of the largest given out by an Indian bank for a foreign project.