The US International Development Finance Corporation (DFC) on Wednesday committed USD 30 million to Dalmia Polypro Industries for building a plastic recycling facility in Maharashtra.
Dalmia, which produces high-quality recycled materials from post-consumer plastic waste, will raise the money from external commercial borrowing (ECB) route to fund the new recycling facility in Nashik, DFC said in a statement.
It said the new facility will support improvements in India's plastic waste value chain and expand the capacity to reduce plastic waste, DFC's regional managing director for South Asia, Ajay Rao, said.
The statement said the facility will have a recycling capacity of 1,71,000 metric tonne per year, and help Dalmia Polypro develop food-grade recycled materials and applications.
The facility will produce high quality recycled PET (rPET), PP (rPP) and HDPE (rHDPE) flakes and granules and will be partially powered by renewable energy and biofuel.
An agreement for the facility was signed between the two entities in the financial capital on Wednesday.
“Dalmia's new facility will increase recycling capacity in India while creating jobs and providing economic opportunities for informal workers and small and medium-sized enterprises in the plastics recycling supply chain,” Mike Hankey, Consul General at the US Consulate General in the city, said.