Haldia Petchem plans $10 bn oil-to-chemical project in South India
OIL & GAS

Haldia Petchem plans $10 bn oil-to-chemical project in South India

HPL's chief executive conveyed that The Chatterjee Group (TCG) was engaged in discussions with both local and global companies regarding a partnership with its majority-owned petrochemical firm, Haldia Petrochemicals (HPL), for the development of a project exceeding $10 billion in southern India. According to Haldia CEO Navanit Narayan, the private equity firm intended to construct an oil-to-chemical project in Cuddalore, Tamil Nadu, capable of producing 3.5 million metric tons per year (tpy) of ethylene and propylene by 2028 to 2029. He mentioned that the project's financial closure was anticipated by the conclusion of 2024.

Narayan elaborated that there was an opportunity to enhance the value of their chemical production, given the substantial market demand, particularly as most of the chemicals they were considering were imported into India. He expressed that this would result in improved margins.

HPL presently operates a petrochemical plant producing 1 million tpy in eastern India and is underway with the construction of the largest integrated phenol project in the country at Haldia. The company aimed to increase profits by domestically manufacturing specialty chemicals.

In 2021, Haldia acquired an inactive oil refinery project in Cuddalore from Nagarjuna Oil, which had been closed following damage from a cyclone in 2011. Originally designed to process 120,000 barrels per day of oil, the planned project was taken over. Indian firms were expanding their petrochemical production capacity in response to the country's growing economy, which escalated the demand for various goods, including plastics, paints, and chemicals like monoethylene glycol, essential for textile fiber and polyester resin production. Narayan observed that while the western part of India was saturated with petrochemical projects, the southern region lacked a significant petrochemical project to fulfill regional demand.

He emphasized that the south was an economically developed area of the country, presenting an advantageous location for such an endeavor. India's petrochemical consumption stood at approximately one-third of the global average, with a heavy reliance on imports to meet its specialty chemicals requirements.

HPL's chief executive conveyed that The Chatterjee Group (TCG) was engaged in discussions with both local and global companies regarding a partnership with its majority-owned petrochemical firm, Haldia Petrochemicals (HPL), for the development of a project exceeding $10 billion in southern India. According to Haldia CEO Navanit Narayan, the private equity firm intended to construct an oil-to-chemical project in Cuddalore, Tamil Nadu, capable of producing 3.5 million metric tons per year (tpy) of ethylene and propylene by 2028 to 2029. He mentioned that the project's financial closure was anticipated by the conclusion of 2024. Narayan elaborated that there was an opportunity to enhance the value of their chemical production, given the substantial market demand, particularly as most of the chemicals they were considering were imported into India. He expressed that this would result in improved margins. HPL presently operates a petrochemical plant producing 1 million tpy in eastern India and is underway with the construction of the largest integrated phenol project in the country at Haldia. The company aimed to increase profits by domestically manufacturing specialty chemicals. In 2021, Haldia acquired an inactive oil refinery project in Cuddalore from Nagarjuna Oil, which had been closed following damage from a cyclone in 2011. Originally designed to process 120,000 barrels per day of oil, the planned project was taken over. Indian firms were expanding their petrochemical production capacity in response to the country's growing economy, which escalated the demand for various goods, including plastics, paints, and chemicals like monoethylene glycol, essential for textile fiber and polyester resin production. Narayan observed that while the western part of India was saturated with petrochemical projects, the southern region lacked a significant petrochemical project to fulfill regional demand. He emphasized that the south was an economically developed area of the country, presenting an advantageous location for such an endeavor. India's petrochemical consumption stood at approximately one-third of the global average, with a heavy reliance on imports to meet its specialty chemicals requirements.

Next Story
Infrastructure Urban

Coal Ministry Achieves Milestones under Special Campaign 5.0

The Ministry of Coal and its Public Sector Undertakings (PSUs) have achieved notable milestones under the Special Campaign 5.0, focusing on cleanliness, operational efficiency, and sustainability across the coal sector. During the implementation phase from 2–31 October 2025, over 1,205 sites were cleaned, covering 68,04,087 sq ft, nearing the target of 82,51,511 sq ft. Scrap disposal of 5,813 MT against a target of 8,678 MT generated Rs 228.7 million in revenue. In addition, 1,11,248 physical and 30,331 electronic files were reviewed, with 74,123 weeded out or closed. Key initiatives showc..

Next Story
Infrastructure Energy

Vesting Orders Issued for Three Coal Blocks under Commercial Auctions

The Ministry of Coal’s Nominated Authority has issued vesting orders for three coal blocks under commercial coal block auctions on 23 October 2025. The Coal Mine Development and Production Agreements (CMDPAs) for these mines were earlier signed on 21 August 2025. The three blocks include Rajgamar Dipside (Deavnara), Tangardihi North, and Mahuagarhi. Of these, two are partially explored while one is fully explored, with a combined peak rated capacity of around 1 MTPA and geological reserves of approximately 1,484.41 million tonnes. These mines are expected to generate annual revenue of abou..

Next Story
Infrastructure Urban

TEC, IIT-Hyderabad Partner to Boost 6G and Telecom Standards

The Telecommunication Engineering Centre (TEC), technical arm of the Department of Telecommunications (DoT), has signed a Memorandum of Understanding (MoU) with the Indian Institute of Technology Hyderabad (IIT Hyderabad) for joint research and technical collaboration in advanced telecom technologies and standardisation. The partnership focuses on developing India-specific standards and test frameworks for next-generation networks, including 6G, Artificial Intelligence (AI), and Non-Terrestrial Networks (NTNs). It also aims to enhance India’s participation in international standardisation f..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?