Hindustan Petroleum Corp. (HPCL) and GAIL India signed an agreement with the Andhra Pradesh government for setting up a INR 400,000 million petrochemical plant in the state. The 50:50 joint venture will set up a 1.5 million tonnes ethylene derivatives plant, which will produce a wide range of petrochemical raw materials for the manufacture of detergents, paints and coatings, cosmetics, textiles and adhesives.

The plant will be set up at the Petroleum, Chemical and Petrochemicals Investment Region (PCPIR) sites identified by the state government at Kakinada.