Indian developer of airports, power projects, roads and mines GVK Power and Infrastructure will be selling a minority stake in its Singapore unit to raise funds to support its Australian projects as well as reduce outstanding debt dues.

Based on information gathered from "two sources with direct knowledge of the matter," Reuters News reported that GVK Power and Infrastructure is currently negotiating with Singapore Investment Corp. regarding the sellout of a minority control in the power developer's GVK Coal Developers (Singapore) Pte Ltd.

If successful, GVK Power and Infrastructure could raise as much as $500 to $600 million from the sellout. Some of the proceeds will be used to partially fund the development of its Australian mines, while some will be placed to help shrink a $1.26-billion purchase debt incurred in 2011.

The Australian assets were bought to help support the company's long-term coal supplies for its various power projects in India. Some will also be sold in other regional markets, Reuters News reported.

GVK Power and Infrastructure wants to dispose as soon as possible the concerned stake in GVK Coal Developers.

"There are people who have approached us, who have shown tremendous amount of interest," Issac George, group CFO, was quoted as saying. He did not identify prospective investors or the potential size of the sellout.

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