GVK Group is set to close the funding requirements for its US $1.2 billion acquisition of Hancock Coal in Australia in the next few weeks, viewed as one of the largest overseas deals by an Indian infrastructure firm.

Sanjay Reddy, GVK Power vice chairman said in an interview with CNBC-TV18 that the company expects closing to happen in the next couple of weeks.

"We have made a first payment of US$500 million to Hancock and then takeover the management and pay the rest of the money in installments," Reddy said, according to transcripts of the interview.

GVK said the Hancock Group will receive US$ 200 million on closure of deal and the balance US$ 560 million when the project achieves financial closure in 2012.

GVK is looking at a total investment of $10 billion in the first phase of developing the mines, rail line and port.

"The first phase of this development is going to be nearly US$10 billion. What gives us the confidence as far as this project is concerned is that there are many things which are a huge benefit. Some of them are that it is of a very large scale, very high quality. It is one of the most advanced coal projects in the world. It has got tie-ups for long-term agreements of letters of intent with some of the most premium markets of the world including Taiwan, China for about 45 million tonne," Reddy said.

He said the Hancock investment is located in a regulatory region of Australia "which is one of the safest regions to invest in."

The investment is being made in GVK Coal Developers (Singapore) Pvt Limited (GVKCD) , a step down subsidiary of GVK Natural Resources Private Limited (GVKNRPL), a GVK Group company.

GVK Power will initially have 10% stake in GVK Coal Developers and the company will look to hike its stake to 49% within the next three-six months.

Reddy said the acquisition comes with an Australian team that will help GVK understand the asset better.

He said in a separate statement that the acquisition builds a strong resource business for GVK, and the company "will now be able to increase the capacity of our coal power business with an assured in-house supply of raw material."