British Petroleum (BP) is planning to expand its Indian operation. The energy giants said that it would be setting up a petrochemical plant with a capacity of 1 million ton. For this, BP will be spending close to Rs. 3,500 crore.

A person close to the development said that the company is taking this measure to increase its foothold in the country. It is believed that the proposed plant will come up in Gujarat.

BP is already going ahead with conversations with other Indian oil refiners. It would be selling them paraxylene, a petrochemical product, going to be manufactured in the new plant.

However, no names have come up till now. Even the company has declined to make any comments on the issue.

BP's investment in petrochemical business in India is following its past failed attempt to enter it through partnership with Hindustan Petroleum Company' (HPC).

HPC is coming up with a new unit in Bhatinda. It would have a total capacity of nine million tons.

The deal, which took place in 2007, failed after BP pulled out of it saying that the investment climate in India was not suitable for it.