The government of Australia's state of Queensland, currently embroiled over a nasty feud with the federal government over the highly controversial $6.4-billion coal mine project between India's GVK Power & Infrastructure, and Hancock Coal owned by Gina Rinehart, the world's richest woman, has given its go-signal to a proposed rail link system that will supplement the coal mine project.

The 311-mile or 495-km standard gauge multi-user rail link was proposed by India's GVK Power & Infrastructure to service the requirements of the Alpha Coal Project and third parties from the Galilee Basin to the port of Abbot Point in Queensland in Australia.

"We welcome the state government's decision to approve the construction of the project. This investment will deliver wider benefits as it provides both initial and additional capacity to satisfy both Galilee and Bowen Basin's rail capacity requirements in the future," GVK Reddy, chairman and managing director of the Hyderabad-based GVK group, said in a statement on Thursday.

The rail link project has an initial capacity to carry 60 million tonnes of coal per annum, but later can be expanded to hold 120 million tonnes of coal per annum on the single line, the company said.

Along this line, India's Adani Enterprises has sent feelers it is starting to scout for potential partners who will help fund the rail line.

"We are eager to cooperate with third parties in such development but also keep open the option of going it alone as deemed in our best business interests," Harsh Mishra, chief executive of Adani Group Australia, said in a statement.

According to similar statements issued by the Queensland state government and the Indian power and infrastructure conglomerate, the state government will acquire land for GVK's new north-south rail line.

The $6.4-billion Alpha Coal Mine Project is currently caught in a catfight after the Australian federal government announced it is purposely delaying giving its final approval to the project to bid for more time to review its environmental impact, more specially on the preservation of the Great Barrier Reef.

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Great Barrier Reef Concerns: Australia Back Tracks on $6.4B Coal Mine Project of Rinehart, India GVK Power