National Stock Exchange of India quizzes Adani on loan for Galilee Basin coal project An opposition party in India has described the State Bank of India's loan to Adani as "improper." Indian conglomerate Adani has been questioned by the National Stock Exchange of India over claims that the State Bank of India has extended it a $US1 billion ($1.1 billion) credit line to fund its mega coal project in Queensland. Adani Australia chief executive Jeyakumar Janakaraj said earlier this week that the funding from the Indian government-owned bank was a vote of faith in its huge $16.5 billion coalmine in Queensland's Galilee Basin. But the NSE on Tuesday asked the company to clarify "in detail" a news report saying the company was lining up the loan with the State Bank, and whether it was aware of any information that should be disclosed under the exchange's listing laws. It comes as an Indian opposition party demanded the Reserve Bank of India intervene and question the "improper" loan, which it says is unjustified and "does not appear to be above board." Adani told the exchange operator that the parties had signed a Memorandum of Understanding, where the State Bank of India "has agreed in principle to consider extending financial assistance of an amount up to $US1b for development of Carmichael coal mine." "This is, however, subject to SBI's due diligence and internal credit approval and also pursuant to the definitive understanding/agreement to be executed between the parties," the company wrote. The news article in question ran in the Hindustan Times on Tuesday, titled "Adani ties up $1-bn SBI loan for OZ coal venture." The New York exchange operator queried Adani on whether the claims in the article were true, saying "if so, you are advised to provide the said information along with the sequence of events in chronological order and the material impact of this article on the company." Fairfax Media also reported on the funding lifeline, and it was understood that Adani founder Gautam Adani, who is a friend of Indian Prime Minister Narendra Modi, signed the funding deal in Brisbane on Monday morning before the Indian leader flew to Sydney. Indian political party the Aam Aadmi Party called for the country's banking regulator to review the loan, which it says is "nothing but a sweet deal for the Adani group." "Details of the MoU continue to be a closely guarded secret, but can the finance ministry deny a fact that many global banks had refused to extend the credit facility for this venture due to environmental reasons?" the party said in a statement. Can the ministry deny that the SBI has been pressurised to bail out the Adani Group in a difficult venture the returns of which are uncertain ? Adani has yet to make final decision on the mega project, called Carmichael, which is hoped to export up to 60 million tonnes of coal each year.