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US Senators welcome Exim Bank's decision on Reliance project

Two Senators representing the Wisconsin State in the US have welcomed the Exim Bank's preliminary approval to Reliance's power project in Madhya Pradesh, saying that this will create hundreds of jobs in the United States.

world Updated: Jul 17, 2010 12:57 IST

Two Senators representing the Wisconsin State in the US have welcomed the Exim Bank's preliminary approval to Reliance's power project in Madhya Pradesh, saying that this will create hundreds of jobs in the United States.

"We did not want to see jobs in our state jeopardised and did all we could to be effective advocates for Bucyrus International's workforce", Senator Herb Kohl said in a statement.

The US Exim Bank's approval for $ 600 million in loan guarantees for Reliance Power’s 3,960 MW power project at Sasan in Madhya Pradesh, will support the sale and export of equipments by Wisconsin firm Bucyrus International, for the plant.

"I am pleased the Export-Import Bank Board approved the revised proposal, and kept this deal alive," Senator Russ Feingold said.

Early this week, the Export-Import Bank had voted to provide loan guarantees that, deal supporters say, will save jobs in Milwaukee and could allow Bucyrus to manufacture equipment for Reliance coal plant in India.

This is the first in a series of three votes the Exim Bank will conduct before the Reliance-Bucyrus deal is finalized.

Following the approval, there will be a vote, possibly in late August, on financial aspects of the deal, then a 35-day period when the deal will be sent to Congress for review, and then a final vote by the Exim Bank board in fall.

Hochberg notified the Senators on June 30th that the Exim Bank would reconsider its decision if Reliance could present a new proposal including an increase in the amount of renewable energy produced in India, with a preference for American-made equipment.

"With Wisconsin unemployment already near double digits, killing this deal would have only made a bad situation worse while effectively sending even more American jobs to China", Feingold said.

"When given a level playing field, American businesses and American workers can compete with anyone in the world. I will continue to be a strong advocate for Wisconsin's manufacturing base, and for the level playing field that Wisconsin's workers deserve", he said.