GVK forms JV with Leighton Intl; to enter mine operating biz

Hyderabad based GVK Power & Infrastructure has formed a joint venture with Malaysia based Leighton International to enter the mine operating & development space. Both the companies are jointly bidding for the Gare Pelma II Coal Block contract in Chhattisgarh. Gare Pelma II Coal Block is owned by Maha Tamil Collieries. The total coal reserve of Gare Pelma II is around 768 million tones as per the Maha Tamil Collieries website.

‘We think this is a good area for additional revenues. There are not many Indian players in this space, so it is a good opportunity for us explore this space’ Issac George, the GVK PIL group CFO told ET NOW confirming the development. GVK feels that this a good long term bet considering that the company owns mines across the globe and is in the process of bidding for coal mines across the globe.

GVK has been on a coal mine hunting spree. It is also in the race to pick up a controlling stake in Australia-based Griffin Coal Mining. It is also in advance talks with Middle East-based MEC Coal to buy its coal mine in Indonesia.

Power is the main business segment for GVK PIL with 80% revenues coming from this segment. GVK group operates three gas-based power plants with 901 megawatts of capacity in the southern state of Andhra Pradesh. It is also building a 540 MW plant in the northern town of Tarn Taran and a 540 MW coal-based thermal Power plant at Goindwal Sahib, Punjab.