GVK Power and Infrastructure is expected to tie up funds for developing a coal mine in Jharkhand shortly.

The open-cast mine located at Tokisud near Ranchi in Jharkhand is expected to cost about Rs 345 crore for complete development. The project is to be funded through a combination of debt and equity ratio of 80:20.

The mine, with estimated reserves of about 52 million tonne, is expected to go on-stream by April 2012. The company is expected to evacuate about two million tpa from the mine to feed the 540 MW Goindwal Sahib thermal power plant in Punjab.

The company is also in the process of developing another coal mine at Seregarha in Jharkhand. The mine was allotted to GVK jointly with ArcelorMittal. With about 44.45 per cent stake in equity of the company floated for developing this mine, GVK is entitled to the reserves of about 67 million tonne. The mine development is likely to entail an investment of about Rs 290 crore.

Also See:

GVK Power mops up funds for Goindwal Sahib project (01-Feb-10)