Dalmia Polypro Industries Private Ltd has secured an External Commercial Borrowing (ECB) loan of $30 million from the U.S. International Development Finance Corporation (DFC). This financial boost will facilitate the establishment of an innovative greenfield recycling facility in Nashik, Maharashtra.
U.S. International Development Finance Corporation (DFC) has unveiled its commitment of 3.7 billion dollars, earmarked for deployment across various critical sectors within the next two-three years. This initiative is set to galvanise transformative projects in key areas such as Healthcare, E-mobility, Infrastructure, finance, microfinance, small businesses, defence, wind, and solar energy. With a global exposure of 40 billion dollars, DFC is further reinforcing its commitment to fostering sustainable development and economic growth, particularly in India, its largest exposure market.
The agreement was commemorated at a ceremonial signing event in Mumbai, wherein Ajay Rao, DFC’s Regional Managing Director, South Asia, emphasized the institution’s commitment to fostering sustainable improvements in India’s plastic waste management. Dalmia Polypro’s upcoming facility is poised to cater to the escalating demand for premium recycled plastic, including food-grade materials, contributing to the realization of a circular plastic waste value chain. Anticipated to process 171,000 metric tons of plastic annually the facility will focus on producing top-notch recycled PET (rPET), PP (rPP), and HDPE (rHDPE) flakes and granules.
“This investment will provide crucial financing to support improvements to India’s plastic waste value chain and expand the country’s capacity to reduce plastic waste. It also builds on DFC’s work to provide financing to support India’s development of more robust waste management services,” says Ajay Rao.
In alignment with this initiative, Mike Hankey, Consul General at the U.S. Consulate General, Mumbai, acknowledged the project’s role in augmenting India’s recycling capacity, generating employment opportunities, and supporting small and medium-sized enterprises within the plastics recycling supply chain. “The project, anticipated to recycle approximately five percent of all plastic waste, is set to directly and indirectly support a substantial workforce of around 40,000 individuals within the supply chain.” says Mike.
Addressing employment and job creation concerns, Pratik from Dalmia Polypro Industries emphasised the potential for job creation, estimating an initial 200 jobs with a projected increase to 500 in the near future. Intellecap was the exclusive advisor to Dalmia Polypro for the execution of this transaction. According to Aditya Dalmia, this approach sets DFC apart on the global stage, ensuring that the organisation’s initiatives drive sustainable and impactful change, reinforcing its position as a key catalyst for international development.