The Hindu Business Line : IFC lends $40 m to West Coast Paper Mills

New Delhi, July 3 The International Finance Corporation (IFC), the private sector arm of the World Bank Group, will provide a long-term loan of $40 million to fund the Karnataka-based West Coast Paper Mills Ltd’s modernisation and expansion plans.

Part of the loan will fund the installation of a new chlorine-free fibre line to eliminate a major source of pollutants from pulping operations.

Mr S.K. Bangur, Chairman, West Coast Paper Mills Ltd, said: “The paper industry has been highly fragmented, with a capacity of 6.8 million tonnes per year distributed among over 500 players, most of whom are informal companies. Plans by several players to consolidate and expand are underway. With IFC’s support, we hope to improve the sector’s efficiency and enhance our competitiveness.”

Environment criteria

Mr Paolo M. Martelli, IFC Director for General Manufacturing and Services, said: “With this loan, IFC will help strengthen West Coast’s cost competitiveness, helping a key player in the industry achieve international standards in environmental and social performance.”

Mr K.L. Chandak, Executive Director, West Coast Paper Mills Ltd, said: “A partnership with IFC will also let us significantly upgrade the environmental performance of our operations in Dandeli, Karnataka.”

The key demand drivers for paper consumption in India are increases in the gross domestic product, literacy levels, corporate spending and industrial activity. Per capita consumption is estimated at seven kgs per year, the lowest in the world and far below the global average of 56 kg per year.

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