Economic Times reported that GVK Group is planning to achieve financial closure for its USD 10 billion Alpha Coal project in Australia by the first quarter of 2013.

Mr GV Sanjay Reddy vice chairman of GVK Power and Infrastructure Ltd said "We expect to tie up finances for the project by first quarter of the next calendar year.”

He said “For typical coal mine like this we are targeting 30% equity and 70% debt. For railway and port, both are dependent on the cash flow you receive. So there we may go for between 15% and 20% equity. Out of the total cost of USD 10 billion, banks will fund around USD 7.5 billion to USD 8 billion.”

He said around 70% of the total debt is going to come from export credit agencies of various countries and they will be raising the balance from commercial banks which will be around a USD 1 billion to USD 1.5 billion.

GVK paid USD 1.26 billion to buy the coal assets and related logistics infrastructure in Australia from Hancock through a group company GVK Coal Developers (Singapore) last year.

The Alpha Coal project includes coal mining, rail corridor from the Galilee Basin to the port of Abbot Point and construction of a port for exports.

Source - Economic Times

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