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August 27, 2014

100+ Indian Organizations Sign Letter Opposing Export-Import Bank Coal Project

After the U.S. Export-Import Bank (Ex-Im) stated last month that it was considering financing Reliance Energy’s 3,960-megawatt Tilaiya Ultra Mega Power Plant (UMPP) and associated coal mine in the Hazaribagh district of Jharkhand, India, over 100 organizations in India signed a letter urging the the Bank to reject the coal project.

The fact that Ex-Im would consider financing Tilaiya is particularly shocking given the human rights and environmental abuses the Indian Civil Society Organizations (CSOs) uncovered at Reliance Energy’s 3,960-megawatt Sasan UMPP and associated mine. These abuses have been documented in the CSO’s report:  Sasan Ultra Mega Power Project, Singrauli, Madhya Pradesh: A Brief Report.

Additionally, the Sasan coal project has been dogged by allegations of corruption, and as a result, the Supreme Court of India ordered the Central Bureau of Investigation to conduct an investigation into reported irregularities surrounding the allocation of coal blocks -- the land used for coal mining -- to Reliance. Sasan received over $900 million in financing from Ex-Im, but despite Reliance Energy’s precarious past, instead of working to prevent financing energy companies with environmental and human rights abuses, the Bank is digging in its heels and doubling down with Reliance Energy and Tilaiya.

And we’ve already seen evidence to suggest that Reliance Energy is prepared to follow the same pattern of infamous environmental and human rights abuses when it comes to Tilaiya. In 2012, more than 200 people at risk of being affected by the Tilalyia coal project were arrested for peacefully protesting at a public hearing. A week later, 20 villages in Hazaribagh decided against allowing Reliance to mine coal in their region, but Reliance pushed on, ignoring the objections of local people.

Even more vexing is the fact that Ex-Im voted last December to stop funding coal plants overseas following the announcement of President Obama’s Climate Action Plan (CAP). Prior to that plan, the Bank financed some of the largest coal plants in the world, including Sasan and South Africa’s 4800-megawatt Kusile coal-fired power plant.  In total, Ex-Im has provided over $7 billion to destructive coal projects since 2007.

It’s time for Ex-Im to listen to the 109 Indian CSOs and all the communities affected by these dangerous coal projects and commit to rejecting the unnecessary, outdated coal agenda once and for all.

--Neha Mathew, Executive Coordinator, Beyond Coal Campaign

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