Haldia Petrochemicals plans $10bn 02C project in TN

Kolkata-based Haldia Petrochemicals (HPL), a producer of polymers and chemicals, is making a $10 billion bet on an oil-to-chemicals (O2C) project in Tamil Nadu.

- S DINAKAR

The project will convert crude oil directly into chemicals to meet the growing demand for polymers in the country, chief executive officer (CEO) Navanit Narayan said. On completion, the project will have a capacity to make 3.5 million tonnes of ethylene and propylene, used in shopping bags, car parts and water pipes, among others.

HPL's huge investment comes amid a strong demand for chemicals in India. It is also due to oversupply in the global petrochemicals business after China added record capacity last year.

The proposed investment in an O2C project in Cuddalore by the US-based The Chatterjee Group, parent of HPL, and HPL, comes amid spending of ₹4,000 crore in a downstream chemical project in Haldia to produce phenols and acetone, said Narayan, a Bachelor of Science in Mechanical Engineering from Birla Institute of Technology, Mesra. The 300 kilo tonnes per annum (KTPA) phenol and 185 KTPA acetone venture will be the largest in India and be ready by the first quarter of 2026. A final investment decision on Cuddalore will be taken by the end of the year after funding is secured, with 4-5 years needed for construction and commissioning.

"We are seeking investors for the Cuddalore project, a venture with a global scale, and are in talks with the central government for incentives," Narayan, who also has a Master of Science in Industrial Engineering & Management Sciences from Northwestern University, Illinois, said.