One of the state-run banks, State Bank of India is soon expected to give a verdict on the controversial $1 billion loan to the Adani group for the mining project in Australia. Sources familiar with this matter said, “The appraisal process is on. We have not yet taken a final call on the disbursement.”
In the November last year, during the PM Narendra Modi visit to Australia, the bank signed a pact with the Adani group regarding the loan.
Since, every loan that is above the amount of 400 crores is passed only by the executive committee headed by the Chairperson, the final decision will also be done by it. Each of the executive committees includes two executive directors among four managing directors of the board and other non-executive director(s).
Reports suggest that the Adani Group is building a 300 Km rail line for the Carmichael project in Australia, which has been estimated at $16 Bn. The infrastructure required for the Adani Group to establish the coal mine is Queensland has been estimated to cost $7.6 Bn.
For laying the rail lines in the area, the Coordinator-General has already approved $2 Bn for the rail line project in the name of North Galilee Basin Rail. The rail line will connect Carmichael Coal Mine with Abbot point coal terminal.
However, on the flip side the Adani’s Group mining project has also been hit with an ownership controversy of the Abbot Point Port lease, which is probably controlled by a number of companies.
The Sydney Morning reported, “Fairfax Media report “has found a complex web of companies tied to Adani’s Australian coal developments, extending from the low-tax regime of Singapore to the tax haven of the Cayman Islands.”
“Company documents also suggest uncertainty about the ultimate ownership of the Abbot Point development, which has attracted global scrutiny and fierce criticism from the environmental movement because of its closeness to the Great Barrier Reef,” it said.