Haldia Petrochemicals (HPL) has announced a 66 percent increase in its investment for a chemical downstream project in Bengal, bringing the total to Rs 5,000 crore. 

The company has signed a licence amendment with Lummus Technology to boost its phenol production capacity at the upcoming phenol and acetone plant in Haldia, for augmenting capacity by 15 percent from 3,00,000 to 345,000 tonne.

The project, aimed for completion by Q1/2026, also includes India’s first on-purpose propylene plant. Despite a legal dispute over unclaimed incentives with the Bengal government, HPL, backed by The Chatterjee Group, affirms its commitment to the region. The project will be funded by subsidiaries AdPlus Polymers and Advanced Performance Materials. Apart from phenol, which is used in the manufacture of resins, and synthetic and nylon fibre, HPL is also focusing on cumene and acetone production to meet growing domestic demand.

The facility also includes India’s first on-purpose propylene plant using olefins conversion technology (OCT), which Lummus will supply. The groundbreaking ceremony for the plant, which will come up within the existing HPL complex, was held in January.  

"Our collaboration with Lummus Technology has enabled us to enhance production capabilities and address India’s expanding demand for phenol and acetone. The capacity upgrade to 345 KTPA reinforces our commitment to delivering high-quality products to support the country’s chemical and allied industries”, as stated by Navanit Narayan, whole time director and CEO of HPL.