SBI to soon take final call on Adani's $1 bn loan for Australian project

State Bank of India is in the process of completing the due diligence for the controversial $1 billion (Rs 6,200 crore) loan to Adani Group for its Australian mining project and will take a final call on it soon.

hidden February 17, 2015 17:07:00 IST
SBI to soon take final call on Adani's $1 bn loan for Australian project

New Delhi: State Bank of India is in the process of completing the due diligence for the controversial $1 billion (Rs 6,200 crore) loan to Adani Group for its Australian mining project and will take a final call on it soon.

SBI to soon take final call on Adanis 1 bn loan for Australian project

File photo of Gautam Adani.

"The appraisal process is on. We have not yet taken a final call on the disbursement," sources close to the development said.

In November last year, SBI had signed a pact with Adani Group on the sidelines of Prime Minister Narendra Modi's visit to Australia.

The final decision on the Adani issue would be taken by the executive committee after due deliberations.

Loans of over Rs 400 crore are generally cleared by executive committee headed by the Chairperson. The other members of the executive committee include two executive directors (of the four managing directors on board) and non-executive director/directors who are present in the city where the meeting is held.

Besides, Reserve Bank nominee director Urjit R Patel (RBI Deputy Governor) is a part of the executive committee.

Adani Mining is building a 300-km rail line for its about $16 billion Carmichael coal mine project in Australia.

The development of the coal mine located at Queensland in Australia and required infrastructure including railways is estimated to cost $7.6 billion.

Queensland state's Coordinator General has approved $2 billion (2.2 billion Australian dollars) rail line project called the North Galilee Basin Rail (NGBR) that would link Adani's Carmichael Coal Mine with Abbot point coal terminal.

Opposition party Congress had raised concerns over SBI's $1 billion loan pact with Adani Group signed during Prime Minister Narendra Modi's visit to Australia.

SBI had already said that it had just signed a memorandum of understanding and not sanctioned loans for the Australian project as yet.

The infrastructure conglomerate has signed a memorandum of understanding for a loan of up to $1 billion from the SBI for the mine, rail and port project, which it aims to build by end-2017.

Australia's federal and Queensland governments are eager to see the mine built following the loss of more than 4,000 coal jobs over the past two years.

PTI

Updated Date:

also read

Senior Opposition leader told me becoming PM twice is enough, says Narendra Modi
India

Senior Opposition leader told me becoming PM twice is enough, says Narendra Modi

The prime minister was addressing via video link beneficiaries of Gujarat government's financial assistance schemes for widows, elderly and destitute citizens

People must be at heart of any infrastructure growth story, says PM Modi
Politics

People must be at heart of any infrastructure growth story, says PM Modi

The prime minister mentioned India's efforts to scale up basic facilities like education, health, drinking water, sanitation, electricity and transport while tackling climate change in a very direct way

PM Modi leaves for India after concluding three-nation European tour, expected to reach Delhi at 11 am
World

PM Modi leaves for India after concluding three-nation European tour, expected to reach Delhi at 11 am

Narendra Modi's three-day, three-nation tour was immensely productive with advanced trade and investment ties and new collaborations for innovation and skill development, said the Ministry of External Affairs spokersperson Arindam Bagchi