US-based private equity firm The Chatterjee Group (TCG) seeks to partner with Indian state-run companies for its oil-to-chemicals project in India. TCG is in talks with Oil & National Gas Corporation (ONGC) and its subsidiary, Hindustan Petroleum Corporation (HPCL) for the planned project estimated at more than USD 10 billion in Cuddalore, Tamil Nadu.

The project entails converting crude oil into chemicals, and the investment underscores the endeavour to ramp up petrochemical capacities in India, as it will help tap the into the demand for specialty plastics and chemicals to make solar panels and electric vehicles.

The proposal for the oil companies is to collectively hold a 49 percent stake in the venture, whereas TCG, doing business in India through Haldia Petrochemicals will own 51 percent.

TCG project has the capability to produce 3.5 million tpa of ethylene and propylene by 2029. The chemical and petrochemical demand in India is expected to reach USD one trillion by 2040, accounting for over 10 percent of the global growth in the segment.