Set up of Plastic Recycling Plant

Introduction

In India, plastic waste is an increasingly severe issue, with millions of tonnes produced each year and only a small portion appropriately recycled. Establishing a plastic recycling plant is a lucrative and green business venture. Owing to the government’s focus on sustainability and the need to comply with Plastic Waste Management Rules under the new formulation, this field is experiencing the emerging demands, investments, and innovations.

Our line of business at CERTILIZE is end-to-end assistance in the establishment of a plastic recycling plant. You will have the advantage of a highly experienced team, to ensure everything needed to start and run a compliant, profitable recycling business: regulatory compliance, plant layout planning, sourcing of machinery, EPR registration, etc.

Required licenses and Certifications

An established plastic recycling factory will need approval from more than one government agency. These include:

• Company Registration: Register your company as a proprietorship, partnership, LLP or Pvt. Ltd. Company.
  Authority – Ministry of Corporate Affairs / Udyam Portal (for MSME)
• Pollution Control Board: Air and water Acts, consent to establish (CTE), and consent to operate (CTO).
  Authority – State Pollution Control Board (SPCB)
• Plastic waste management permitting: Required pursuant to PWM Rules 2016 (as amended in 2022).
  Authority – SPCB
• Factory License: Required if more than 10 workers are employed.
  Authority – Department of Labour
• Fire NOC: Conformance to fire safety and infrastructure.
  Authority – Municipal Fire Department
• Trade License: Needed to operate in accordance with law.
  Authority – Local Municipal Corporation
• Approval of Electricity Load: Required for industrial use.
  Authority – State Electricity Board
• GST Registration: Required in the invoicing and taxation process
• EPR Registration: Registration with CPCB/SPCB Extended Producer Responsibility to create EPR credits
• Groundwater NOC (if applicable): Needed in case of groundwater use in the washing process.
  Authority – Central Ground Water Authority (CGWA)

List and Cost (Indicative) Standard Machinery

The type and size of the recycling plant will determine the machinery. The list here is typical of a 300 kg/hour capacity plant:

Recycling of Plastic

• Collection and Sorting: Scrap dealers or industries collect the waste plastic at municipal level and sort out the waste either manually or mechanically.
• Shredding: The plastics are then sorted and fed into a shredder whereby the material is reduced to flakes or chips.
• Washing: Dirt, labels and other impurities are removed by washing tanks and friction washers on the flakes.
• Drying: Creating dried flakes is by centrifugal or hot air dryers.
• Agglomeration: Soft plastic films that are thin are processed using agglomerates when necessary.
• Extrusion: Melted dried plastic is pushed through an extruder creating strands.
• Cooling and Cutting: Strands get cooled in water tanks and chopped into granules with pelletizers.
• Packing Storage: Manufactured final granules are packed in the bags, ready to be sold or reused.

Market Overview

• In India, more than 3.5 million tonnes of plastic waste are produced.
• Increasing demand in the automobile, FMCG packaging, textile and construction sectors.
• Large numbers of plastic granules are standard in the production of buckets, chairs, sheets, and packaging films, among others.
• The industries are being driven to use recycled materials by growing environmental awareness and stringent laws.
• Exportation of recycled plastic granules is growing.

EPR (Extended Producer Responsibility) Benefits

By establishing a recycling plant that is registered under CPCB, you will be in a position to:

• Create EPR credits and trade with PIBOs (Producers, Importers and Brand Owners)
• Enter into long-term business partnerships with major brands that have the requirement to meet plastic waste provisions
• Gain access to government subsidies and incentives for compliance
• Enhance ESG alignment through ESG and CSR alignment
• The EPR credit trade leads to a new source of revenue for recyclers

What can CERTILIZE do for you?

• Full licensing and documentation services (CTE, CTO, PWM authorization, EPR)
• Crafting Detailed Project Report (DPR) and finances
• The design of the layout of the plant and the acquisition of equipment
• Supervision of installation and commissioning
• Raw materials and granules sales using vendor and buyer networks
• Continuing compliance filings and audit services

There is a need to have the appropriate knowledge, compliance, and execution of the plastic recycling plant launch. CERTILIZE makes sure that not only is your project compliant, but also commercially successful. Being well-versed in establishing 100+ waste processing facilities around India, you can have a trusted partner in bringing your idea to life.