Alpha coal project in the Galilee Basin is believed to host massive thermal coal resources. It has recently received environmental approval.

GVK has earlier planned to reduce its stake to 79% by the end of 2012. It now plans to achieve financial closure for the project by the third quarter of 2013 by cutting its stake to 51%, reported Reuters.

GVK will, however, go ahead with the development at the project that involves the construction of the mine, a 500km rail line and a port with an annual capacity of 60 million tons.

GVK vice chairman Sanjay Reddy told the news agency, "While we have already started our preliminary discussions with bankers and financiers, these will start taking serious shape once we have the construction contracts also in place.

"Even in this environment, the reason why this project is going to take off is primarily because of our cost. Our free-on-board cost per tonne for the life of mine is going to work out to around A$55 a ton."