Singapore/Mumbai: SBI is preparing to reject a $1 billion loan request from Adani Enterprises intended for a $7 billion coal project in Australia, sources with direct knowledge of the move said.
The State Bank of India will scrap a preliminary deal signed last year. The sources said India`s largest bank had not yet given Adani official notice of the internal ruling, but said that was now due to be communicated to the group.
signed during a visit to Australia by Indian Prime Minister Narendra Modi in November, a preliminary caused uproar in India, where opposition politicians criticised the record loan to a group whose founder is perceived to be close to Modi. It said then that the signed deal was a preliminary memorandum of understanding, and that it would do proper due diligence and a project appraisal before giving out any cash.
