Haldia Petrochemicals (HPL) has raised its investment in a chemical downstream project in Bengal by 66%, bringing the total to ₹5,000 crore. The project, slated for completion by the first quarter of 2026, includes the construction of a phenol and acetone plant with a production capacity increase of 15%, from 300,000 tonnes to 345,000 tonnes.

HPL has signed a license amendment with Lummus Technology to enhance phenol production and will also establish India’s first on-purpose propylene plant using olefins conversion technology supplied by Lummus. The project will be executed through HPL subsidiaries AdPlus Polymers and Advanced Performance Materials, focusing on phenol, acetone, and cumene to address growing domestic demand.

Despite an ongoing legal dispute with the Bengal government regarding unclaimed incentives, the company has confirmed its commitment to the project. HPL’s CEO, Navanit Narayan, highlighted the collaboration with Lummus as instrumental in scaling production to meet the increasing demand for chemical products in India.

The initiative marks a significant step toward expanding domestic chemical production capacity while incorporating advanced technologies to enhance operational efficiency.