Transaction includes Renewable and Gas Turbine Technology
FOR IMMEDIATE RELEASE November 7, 2010
Maura Policelli (202-565-3200)
MUMBAI, INDIA - On Saturday, November 6th, 2010 Chairman Fred P. Hochberg of the Export-Import Bank of the United States signed a Memorandum of Understanding with Anil Ambani, Chairman of Reliance Power, Ltd. This $5 billion MOU will support Reliance Power's purchase of 8,000 megawatts of gas-fired power generating equipment, as well as 900 megawatts of renewable energy (solar and wind) generating equipment from US manufacturers and service providers.
Recently, Ex-Im Bank also issued a Letter of Interest to Reliance Power to support the first phase of the company's investment in these projects. This LI indicates the availability of Ex-Im financing for its purchase of approximately $400 million in GE gas and steam turbines to be exported from the U.S. for the company's 2,400 megawatt Samalkot power facility in Andrah Pradesh. A preliminary application has been submitted to Ex-Im Bank.
Chairman Hochberg signed the MOU with Reliance while accompanying President Obama on his trip to India to strengthen U.S. leadership and economic competitiveness in the region.
In addition, on Oct. 21, 2010, the agency approved a $917 million guaranteed loan to Sasan Power Ltd., a 3,960 megawatt coal-fired electricity generating facility owned by Reliance Power Ltd. This credit provides long-term financing for Reliance's purchase of U.S. exports of mining equipment and power development services from Bucyrus international, North American Coal, Black & Veatch and other U.S. vendors. Energy is a primary sector for more U.S. exports to India, commented Chairman Hochberg. Given the Indian government's Power for All initiative to provide electricity to all corners of its nation by 2012, the demand for U.S. technology and equipment will grow.
Ex-Im Bank is committed to advancing economic ties between the U.S and India; the export of goods and services to India's developing energy sector is a crucial element to strengthening this relationship. Approximately 30% of Ex-Im Bank's current exposure in India is in the energy sector.
As a result of its growing GDP, expanding middle-class, and emerging markets, India is one of Ex-Im Bank's top markets for increasing transactions in all industries. Now more than ever, India will be seeking high quality products and services to meet the growing demands of its consumers, stated Chairman Hochberg. America makes what India needs, and Ex-Im is ensuring that U.S. companies can seize these new export opportunities.
Ex-Im, an independent, self-sustaining federal agency, provides export financing, strengthens U.S. export competitiveness, and helps create and maintain U.S. jobs. It functions at no cost to American taxpayers. The Bank provides a variety of financing products and services, including working capital guarantees to help small and medium-sized U.S. businesses, export-credit insurance to protect against nonpayment by foreign buyers, and loan guarantees and direct loans to assist foreign buyers of U.S. goods and services.