Industry sources said Punj Lloyd may be looking at selling its entire 17 per cent holding in Medanta to cut its debt.
A spokesperson of Punj Lloyd, however, said the company has no plans as of now to sell the stake.
KKR has been investing in healthcare space in India and has earlier invested USD 89 million in Apollo Hospitals.
In December 2013, Carlyle Group bought 26 per cent stake in Medanta Medicity from US PE firm Aventus Capital for Rs 960 crore, valuing the company at Rs 3,550 crore.
Sources said KRR-Punj Lloyd deal may be happening at a valuation of Rs 3,850 crore, implying a premium to the Carlyle-Aventus deal.
PE interest in healthcare space was last year highlighted by KKR investing in Gland Pharma while Carlyle buying out Avenue Capital. Bain Capital bought Blackstone's stake in Emcure Pharma and IFC invested in Fortis Healthcare.
Medanta Medicity Hospital, co-promoted by cardiac surgeon Naresh Trehan and Sunil Sachdev who holds around 54 per cent stake, is spread over 50 acres and has a capacity of 1,250 beds and over 350 critical care beds and 45 operation theatres.
Punj Lloyd is a leading infra company that is divesting stake in its non-core assets to cut debt. Punj Lloyd is also expected to receive Rs 1,000 crore in settlement from Oil and Natural Gas Corp (ONGC) relating to work it has undertaken with PT Sempec in January 2007.
Punj Lloyd is aiming at mobilising around Rs 2,500 crore through asset sale and aggressively recovery in this fiscal, the sources added.