Canberra, Sept 19 : Indian infrastructure giant GVK will pay 1.26 billion dollars to acquire a majority stake in coal assets owned by Australia''s Hancock Group.

Hyderabad-based GVK will take a 79 percent stake in two mines and own a third, as well as a port and rail project, the BBC reports.

GVK, which is controlled by Indian billionaire GV Krishna Reddy, currently owns airports, power plants and other infrastructure projects in India.

The group said in a statement that it would acquire a 79 percent stake in the Alpha and Alpha West coal mines in the Galilee Basin in Queensland, and would have full ownership of Kevin''s Corner coal mine and the rail and port project connecting the coal mines.

Reddy said in a statement that this acquisition would build a strong resource business for the company.

"We will now be able to increase the capacity of our coal power business with an assured in-house supply of raw material," he added.

According to the report, production is due to start in 2014 and is expected to bring in over 30 million tons per year of thermal coal.

The company said that at full production the mines are expected to produce nearly 84 million tons per year. (ANI)