Mitsubishi Chemical Holdings Corporation will invest around Rs.16.65 billion ($368.2 million) to set up a second plant at Haldia in West Bengal, Chief Minister Buddhadeb Bhattacharya said Tuesday.

"Mitsubishi's board has approved the investment proposal and a formal announcement will be made by senior company officials sometime in January," Bhattacharya told the annual general meeting of the Bengal Chamber of Commerce here.

The Japanese chemical giant earlier invested Rs.14.75 billion ($326.2 million) in its existing plant at Haldia that produces 470,000 tonnes of purified terephthalic acid (PTA) a year. PTA is used to make polyester for fabrics.

The new plant will have a capacity of 800,000 tonnes.

Mitsubishi Chemical is expanding its capacity to meet the rising PTA demand in India, which is estimated to grow at an average rate of seven percent per annum.