By Bizodisha Bureau, Bhubaneswar, February 24, 2020: The Chatterjee Group (TCG) has evinced interest to invest in the upcoming petrochemical project in Odisha, sources said adding that it is looking for a global energy firms to enlist them as equity partners in this project.

TCG, owned by Purnendu Chatterjee, will invest around Rs 78,000 crore in Odisha, sources added. TCG had marked its foray in the petrochemicals business in India back in 1994 by setting up a project in Haldia in West Bengal.

TCG’s flagship company, Haldia Petrochemicals (HPL) is looking at the process of land acquisition by the Odisha government for the project.

The Odisha government has started the process of acquiring around 3,320 acres of land in Balasore, which is near the upcoming Subarnarekha port. This project is expected to have a 1.08-mtpa (million tonnes per annum) polyethylene unit, a 1.6-mtpa unit of paraxylene, and another 1.25-mtpa unit of purified terephthalic acid, besides a light crude oil refinery. Aromatics complex and ethylene complexes would be set up.

However, the project may take around two years to start as land acquisition process has to be completed first, and the necessary environment and forest clearances have to be obtained.

In Odisha, of the total land to be acquired, 900 acres is held privately, while 700 acres is forest land. The state government has around 800 acres, and the rest is a mix of Bhoodan land and others.

Industry officials are of the view that the land acquisition of this proportion is a sensitive matter in the state, given its past when South Korean firm Posco backed out owing to land issues.

TCG, which is looking at a 2:1 debt-equity ratio to fund these projects, is also planning to approach investors and banks to raise capital in the next six months.

TCG has decided to maintain status quo on its operations in Haldia in West Bengal due to the congestion around Haldia port, which the group feels is unable to handle more loads.