Indian infrastructure giant GVK on Saturday said it would pay $1.3 billion for Australia's Hancock coal and infrastructure projects as it lines up energy supplies for upcoming power plants. The purchase of three coal mines, a railway line and port projects linking the coal projects in Queensland, involves "truly world-class coal assets in both quality and scale," said GVK group chairman GVK Reddy.
The purchase comes as Indian companies have been competing with each other to buy coal assets all over the world as they build power projects, steel and other plants to fuel the country's fast-growing economy. India is heavily dependent on coal for power generation.
The deal is aimed at giving GVK's listed flagship, GVK Power and Infrastructure, sufficient fuel supplies for its planned power plants. "This acquisition builds a strong resource business for GVK," said Reddy in an emailed statement. "We will now be able to increase the capacity of our coal power business with an assured in-house supply of raw material." GVK, based in the southern Indian city of Hyderabad, owns and operates power, airport and other infrastructure projects in India.
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