“We have made significant progress towards realising this project. This milestone symbolises our common vision,’’ GV Krishna Reddy, chairman, GVK, said. “We are in discussion with many banks and are hopeful of achieving the financial closure for this project in a year’s time. The coal production is likely to start in another 1-2 years,’’ he said.
The company is currently doing the legal documentation and it is believed that the valuations have also gone up.
The company is also exploring equity participation and fund infusion through banks and export credit agencies to realise this mega project. In September 2011, GVK had bought a 79% stake in the Alpha and Alpha West thermal coal projects in Queensland’s Galilee Basin and 100% of the Kevin’s Corner coal project next to Alpha.