According to the official reports, the U. S. Export-Import Bank has denied loan guarantees for a coal project in India, putting 1,000 U. S. jobs at risk.

The Milwaukee Journal Sentinel reported on Saturday that the bank's decision has effectively wiped out a $600 million sales order for coal-production equipment produced by Bucyrus International Inc. in 14 U. S. states, including Wisconsin, Illinois, Minnesota and Indiana.

The bank's board voted 2-1 Thursday to deny financing for Indian company Reliance Power Ltd. on environmental concerns.

Export-Import Bank Chairman Fred Hochberg said in a statement, "President Obama has made clear his administration's commitment to transition away from high-carbon investments and toward a cleaner-energy future. After careful deliberation, the Export-Import Bank board voted not to proceed with this project because of the projected adverse environmental impact."

But state and local leaders say the bank's action only guarantees India will find the equipment it needs elsewhere, most likely from China or Belarus.

Bucyrus Chief Executive Tim Sullivan told the Journal Sentinel, "Unless the Obama administration jumps all over this and corrects a wrong fairly quickly, I am confident this business is going elsewhere. The bank's decision has had no impact on global carbon emissions but has cost the U. S. nearly 1,000 jobs."

"I was absolutely stunned by their decision. It was the most shortsighted, unconscionable decision you could imagine, and I can't see any justification for it, Democratic Gov. Jim Doyle has said.

According to Doyle, "My discussions with the bank chairman were hardly confidence-building. They really could not justify their decision except somehow, somebody told them that if the word 'coal' is anywhere in a plan, then they can't move forward with it." (With Inputs from Agencies)