The U.S. Export-Import Bank has decided to make a $900 million loan to Reliance Power Ltd. (532939.BY) to build a coal-fired power plant in India, reversing an earlier decision to reject the financing.

The power plant has been widely criticized by environmental groups, which say the Export-Import Bank shouldn't be financing a project that will produce carbon dioxide emissions and contribute to global warming.

By a vote of 3-0 Wednesday, the bank's board of directors approved financing for Reliance Power's "Sasan" power plant, which is expected to produce about 4,000 megawatts of power.

In doing so, the board reversed an earlier decision in June to deny the funding.

The $900 million loan will be used to buy goods and services from U.S. companies. Roughly half of the money will be used to buy equipment from Bucyrus International Inc. (BUCY), a Wisconsin-based company that makes mining equipment.

-By Tennille Tracy, Dow Jones Newswires; 202-862-6619; tennille.tracy@dowjones.com
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