JSW Energy (Bengal) will invest R20bn ($426m) to develop coal mines in India.

JSW Energy (Bengal) is a special purpose vehicle (SPV) floated this year to develop power and coal projects in the Indian state of West Bengal.

The company has a 26% stake and JSW Energy a 74% stake in the SPV.

It has already entered into a long-term coal supply agreement with the West Bengal Mineral Development Corporation for coal supplies from the Kulti and Sitarampur coal blocks in the state.

Funding for the project will be a mix of debt and equity in a 3:1 ratio and is expected to be completed by 2014-15, according to business-standard.com.