GVK Power & Infra, part of GVK group is in talks with Indonesia's PT Kideco Jaya Agung for divesting part of its stake in the coal mines that it bought last week from Australia's Hancock Group for $1.26 billion. GVK decided to pay $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.
Kideco is demanding MDO [mine development operatorship] along with acquiring minority stakes. 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 $10 billion.
The company registered growth of 214.99% in its net profit for the year ended March 31, 2011 at Rs 68.29 crore as compared to Rs 21.68 crore for the year ended March 31, 2010. Its total income increased by 108.01% at Rs 123.06 crore for the year from Rs 59.16 crore in previous year.
