Mint said citing two sources that GVK group of which GVK Power & Infra is a part is in talks with Indonesia PT Kideco Jaya Agung for divesting part of its stake in the coal mines that it bought last week from Australia Hancock Group for USD 1.26 billion.

On September 17, GVK agreed to pay USD 1.26 billion for a majority stake in three Australian coal mines and a port and rail project owned by Hancock Group to secure long-term coal supplies for the Indian group's power projects.

One source who did not wished to be identified, told Mint that "Along with acquiring minority stakes, Kideco is asking for an MDO."

The paper said a GVK spokesperson and Kideco did not respond to emails seeking comment on the development.

Mint added that GVK will need the financial support and technical expertise of partners to develop the mines and the rail and port projects, with the overall investment required in the first phase pegged at USD 10 billion.

Mr GV Krishna Reddy GVK group Chairman was quoted by the paper as saying that "There are three projects the mines, the port and the railways. We will keep the majority stake and divest minority stakes in them."

He was quoted as saying that the group is in talks with many people and it will finalise the names in some time.

(Sourced from Mint)