Haldia Petrochemicals Ltd has announced an upgrade of its ongoing chemical downstream project in Bengal, raising the investment outlay by 66 per cent to ₹5,000 crore.

The company has signed a licence amendment with Lummus Technology, a step-down subsidiary of HPL, to expand its phenol production capacity at the upcoming phenol and acetone plant in Haldia.

Production capacity is set to rise 15 per cent from 300,000 to 345,000 tonnes. HPL aims to complete the project by the first quarter of 2026.

The statement, which came three days after TCG scored a significant legal victory in the Supreme Court against Bengal, appears to send out a signal that The Chatterjee Group (TCG), the promoter of HPL, remains committed to Bengal and is willing to work closely with the political leadership of the state despite the tussle over unclaimed incentives of around ₹2,968 crore.

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 rising domestic demand and foster growth in the downstream chemicals sector. The facility also includes India’s first on-purpose propylene plant using olefins conversion technology (OCT), which Lummus will supply as well, the company said.

Navanit Narayan, whole time director and CEO of HPL, said, “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.”

The groundbreaking ceremony for the phenol plant, which will come up within the existing HPL complex, was held in January. This is the largest expansion undertaken by the company since Project Supermax which expanded HPL’s polymer capacity by 30 per cent in 2010.

The project is being implemented by HPL’s step-down subsidiary AdPlus Polymers and Chemicals (AdPlus) and is being funded by its holding company and another HPL subsidiary, Advanced Performance Materials Private Limited. AdPlus is raising the required project finance on the back of the project and HPL will not raise any capital.