(Bloomberg) -- US-based private equity firm The Chatterjee Group is seeking to partner with Indian state-run companies for its oil-to-chemicals project in the nation, according to people familiar with the matter.

TCG is in talks with Oil & National Gas Corp. and its unit Hindustan Petroleum Corp. for the planned project estimated at more than $10 billion in the southern Indian city of Cuddalore in Tamil Nadu, the people said, asking not to be identified as the discussions are private.

The proposal is for the oil companies to collectively hold a 49% stake in the venture, whereas TCG, doing business in India through Haldia Petrochemicals Ltd., will own 51%, they said.

A TCG representative didn’t immediately comment when reached by phone. Haldia Petrochemcials, ONGC and HPCL didn’t respond to requests for comments.

Investment in the project, which will convert crude oil into chemicals, underscores attempts at ramping up petrochemical capacities in India as it provides building blocks for everything from consumer goods to car parts.

The market is drawing billionaires and global majors amid a consumption boost in the world’s fastest-growing major economy. Chemical and petrochemical demand in India is expected to rise threefold to $1 trillion by 2040, accounting for more than 10% of the global growth in the segment, according to government estimates.

Most oil refiners, including billionaire Mukesh Ambani’s Reliance Industries Ltd., are focusing more on producing petrochemicals than traditional fuels, to tap the booming market that’s seeing demand for specialty plastics and chemicals for making solar panels and electric vehicles.

TCG project is capable of producing 3.5 million metric tons per year of ethylene and propylene and by 2029, Haldia Chief Executive Officer Navanit Narayan said, according to a Reuters report in April.

--With assistance from Rakesh Sharma and Anthony Di Paola.