Adani eyes debt-equity ratio at 1:1 in next 5 years

The Adani group which has a majority stake in Adani Power, completed its coal mining exploration programme at the Carmichael mine project in the Galilee basin in Australia. The company said that the project had estimated coal reserves of up to 10 billion tonnes at the mine.

The company hopes to start production with USD10-billion project by 2015, and expects to reach its peak level of 60 million tonnes a year by 2022.

"We have completed our first phase of exploration and now Bankable Feasibility Study (BFS) is under process. Different approvals are at different stages and are we have received positive response from the Australian government," Gautam Adani, chairman, Adani Group told CNBC-TV18 in an interview. 

"We are actually working with different options. Right now of course promoter is holding more than 78-80 percent equity and as per SEBI guidelines too, we have to dilute our equity. So, one of the options is to dilute the equity of the promoters at appropriate levels. Debt-equity ratio of 3:1 in any infrastructure company is standard when you are implementing a project and that is not unusual. We are fully committed that within five years of operation our debt-equity ratio will come to 1:1 level," he said.