GAIL (India) Ltd is in talks with India's leading refining companies including the Essar Group and HPCL-Mittal Energy Ltd (HMEL) for setting up a Rs. 20,000 crore plus naphtha based petrochemical project in the country with a capacity of 1 mn tpa. HMEL is a joint venture company formed by Hindustan Petroleum Corp Ltd (HPCL) and ArcelorMittal chairman LN Mittal. The company also plans to diversify into shipping and has already lined up an investment of Rs 7000 crore for purchasing 6-7 large gas carriers or charter hire for importing LNG from the US. Talks are on between GAIL and Shipping Corporation of India, MOL, Hyundai and others. "We have already lined a Rs. 40,000-crore investment plan for the next three years and are also looking at the possibility of setting up a Rs.20,000-crore naphtha-based petrochem project," BC Tripathi,chairman and managing director, Gail, told HT. Tripathi, however, said the company is yet to finalise the location of its new petrochem project. "We are in talks with Essar, HMEL and HPCL for this new petrochem project and will be decide on the location only after the selection of the JV partner."