GVK Power gets nod for port development in Australia

Hyderabad-based GVK Power and Infrastructure Limited has received Australian federal government's approval for its Terminal-III (T3) development at the port of Abbot Point, near Bowen in Australia, under the environment protection and biodiversity conservation Act 1999.

Today's approval for GVK's Alpha Coal Port Project at Abbot Point, follows a separate approval for the Alpha mine and rail projects on August 23.

GVK Hancock’s $10 billion Alpha Coal Project involves a thermal coal mine in the Galilee Basin, a 495-kilometre standard gauge railway line and port facilities at Abbot Point. Pending all approvals, first coal from the Alpha project is scheduled for early 2016 with the product bound for the Asian export market.

“The development further strengthens our commitment to develop our world-class projects in a timely and responsible manner,” GVK chairman GVK Reddy said in a filing to the BSE on Wednesday.

Besides creating thousands of jobs, the combined Alpha mine, rail and port project's returns to the Australian government of over $1 billion each year in royalties and taxes will enure more money for governments to spend on infrastructure, health, schools, police, services, local communities, careers for the next generation and sport and recreation, it said.

The approval also provides for over $20 million of GVK expenditure during the initial project approval life for indigenous rangers and other state-federal support for the Great Barrier Reef Field Management Programme, and other reef conservation benefits through the Great Barrier Reef Marine Park Authority. In addition, GVK through its mine and rail conditions, will also specifically provide a $2-million contribution to the coordination of research into precious fauna over 10 years, the release added.