Congress Attacks SBI For $1-billion Loan; Alleges A Nexus Between Modi And Adani

Congress has demanded explanation from the Centre and the State Bank of India (SBI) over the latter’s decision to lend $1 billion to the Adani group. It also accused Prime Minister Narendra Modi of “taking interest in promoting the Adani group" and demanded that SBI should make disclose the MoU it had signed with the Adani group.

SBI had announced a loan of up to $1 billion to Adani for developing a coal mine during Modi's Australia visit.

"What was the propriety of SBI giving loan to Adani, who was sitting next to the Prime Minister during the visit, at a time when five foreign banks have denied credit to the group for the project?" Congress General Secretary Ajay Maken questioned.

"The PM appeared taking keen interest in promoting Adani in getting the loan worth Rs 6,200 crore during the visit in which the SBI chairman was also present. When five top foreign banks have declined to fund Adani's project, what was the need and the sense in giving such a huge loan to him from the hard-earned money deposited by the common people? Did SBI do the due diligence? If it did so why it is not declaring the MoU?” asked Maken.

Adani, however, denied the charges. “There are already a couple of international banks which have funded our acquisition of mines in Australia. I don't think it is for public consumption for us to tell which banks are currently considering the project in different stages of approval. SBI would not certainly be just one bank when it comes to final financial closure of this project and you will see a very impressive list of international banks that are going to fund the project,” it said.