The Chatterjee Group is reportedly in discussions with Oil & National Gas Corp. and its subsidiary, Hindustan Petroleum Corp., regarding the proposed project, which is estimated to exceed $10 billion. This project is planned for the city of Cuddalore in Tamil Nadu, according to the sources, who requested anonymity due to the confidential nature of the talks.

The proposal suggests that the oil companies would collectively hold a 49 per cent stake in the venture, while The Chatterjee Group, operating in India through Haldia Petrochemicals, would retain a 51 per cent share, the sources indicated.

A representative from The Chatterjee Group did not provide immediate comments when contacted by phone. Similarly, Haldia Petrochemicals, ONGC, and HPCL did not respond to requests for comment.

The investment in this project, which aims to convert crude oil into chemicals, highlights efforts to increase petrochemical capacities in India. This is significant as petrochemicals are essential for a wide range of products, from consumer goods to automotive parts.

The growing market is attracting billionaires and global corporations, driven by increased consumption in the world's fastest-growing major economy. Government estimates predict that chemical and petrochemical demand in India will triple to $1 trillion by 2040, contributing to more than 10 per cent of global growth in the sector.

Many oil refiners, including billionaire Mukesh Ambani's Reliance Industries, are shifting focus from traditional fuels to petrochemicals to capitalise on the booming market, which demands specialty plastics and chemicals for solar panels and electric vehicles. According to a Reuters report in April, the Chatterjee Group's project is expected to produce 3.5 million metric tons per year of ethylene and propylene by 2029, as noted by Haldia's Chief Executive Officer, Navanit Narayan.