Word of a deal that could save 1,000 jobs across 13 states, including 300 in Wisconsin, broke Wednesday just hours before President Barack Obama spoke about the economy at a town hall meeting. Democrats who were pressuring the White House to intervene on behalf of Bucyrus International ( BUCY - news - people ) Inc., a South Milwaukee manufacturer, praised the decision by the U.S. Export-Import Bank to reconsider a vote that effectively killed the project. The bank cited environmental concerns last week when it voted to deny loan guarantees to Reliance Power Inc., which is building a coal-fired power plant in India.
Without those guarantees, Bucyrus would lose its $600 million contract with Reliance for mining equipment, which the Wisconsin company said would jeopardize 1,000 jobs both at its main plant in Wisconsin and at suppliers across the country.
The issue was a hot political one for Obama, who held a town hall meeting on the economy in Racine, a city 15 miles south of Bucyrus headquarters that's suffering under 14.2 percent unemployment. A Republican candidate for governor, Scott Walker, took out a full page ad in the Racine Journal Times blaming "radical environmental policies" for putting the Bucyrus deal at risk. Democrats and Republicans alike urged reconsideration of the vote, arguing that the Indian company would turn to other suppliers outside the U.S. if the loan guarantees weren't made. Both Democratic Gov. Jim Doyle and Milwaukee Mayor Tom Barrett, who is the only major Democratic candidate governor, said they personally thanked Obama before the town hall for the bank's decision to reconsider the issue. Barrett said he didn't think Obama got personally involved but White House officials had been working with the bank. "I'm very excited they reversed their decision," Barrett said. Doyle said the agreement "will support good manufacturing jobs at Bucyrus and clean energy jobs, both of which are critical to driving our economic recovery." Obama did not mention Bucyrus during his 70-minute town hall visit. News of a deal broke Wednesday morning just before Obama landed in Milwaukee. Bucyrus chief executive Tim Sullivan said in a statement that he spoke with the bank's chairman, Fred Hochberg, who told him the bank now has a broader understanding of Reliance Power's development of other renewable power, calming concerns about the environmental impact of building the coal plant. Sullivan said Hochberg committed to an expedited review and approval of the loan guarantees. A message left with the bank was not immediately returned Wednesday. The plant is under construction in Sasan, in central India, and is scheduled to be up and running in 2012. The fossil fuel project was the first to come before the government-run bank since it adopted a climate-change policy to settle a lawsuit and to meet Obama administration directives. Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints. Nothing in this article is, or should be construed as, investment advice. |
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INVESTMENTS IN INDIA
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http://in.groups.yahoo.com/group/investwise/
INVESTMENTS IN INDIA
We are low-risk, long-term investors.
Stocks, mutual funds and the entire investment gamut. Only financing/investment avenues in India will be discussed.
For any assistance, questions or improvement ideas, contact investwise-owner@yahoogroups.co.in
****************************************************************
NEW! ==== Check our LINKS and FILES sections for a world of information. REGULARLY UPDATED.
NEW! ==== Check "Tracklist" in Links and Files sections for Investment Ideas.
****************************************************************
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