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Setting of Paper Recycling Plant

Introduction

Paper is one of the most widely used materials globally, and its demand has been increasing over time due to its applications in various educational, office, packaging, and commercial sectors. Paper manufacturing, however, has a greater impact on the environment since it includes deforestation and the use of water. Recycling of paper proposes a viable alternative that minimizes environmental degradation and yields profitable returns.

The installation of a Paper Recycling Plant is a sound business and environmentally friendly move. The demand for paper by India and the subsequent drive to regulate waste management provide a perfect business opportunity where entrepreneurs can venture into the business.

CERTILIZE takes care of entrepreneurs and companies interested in setting up a unit for paper recycling. We handhold you in every step involving licensing, erection of plant, selection of machinery, EPR compliance and market connectivity.

Certification/Licensing Requirement

Recycling paper implies installing a recycling unit, which requires taking a number of statutory approvals and licenses:

  • Company Registration: Get your company registered; Proprietorship, Partnership, LLP or Private Limited Company. Authority: Ministry of Corporate Affairs / Udyam Portal (in relation to MSME enjoyments)
  • Environmental clearance: Consent to Establish (CTE) and Consent to Operate (CTO) by the provisions of the Water Act and the Air Act. Authority: State Pollution Control Board (State PCB)
  • Factory License: This is required should the unit have more than 10 employees or electricity is used. Authority: Labour Department
  • Fire NOC: To install fire safety measures & Approve exit plans. Authority: Local Municipal Fire Department
  • Trade License: A license to manufacture. Authority: Local Municipality
  • Load Approval Electricity: Request for authorized load according to the requirements of the Machine. Authority: State DISCOM
  • GST Registration: Must need to bill, tax credit, and compliance
  • EPR Registration (in case of manufacture of products from recycled paper): Under Extended Producer Responsibility, to some types of packaging. Authority: CPCB / SPCB (As Applicable)
  • NOC of Groundwater (in case of borewell): Mandatory, in the event you are using groundwater in the recycling system. Authority: Central Ground Water Authority (CGWA)

Standard Machinery and Cost (Indicative)

Below is a typical machinery list for a small- to medium-scale paper recycling plant with a daily processing capacity of 1 to 2 tons:

Machinery Purpose Approx. Cost (INR)
Pulper Pulping old paper into slurry 4,00,000
Agitator Stirring pulp slurry 80,000
Screening Machine Removing contaminants 2,50,000
De-Inking System (optional) Removing ink from waste paper 3,00,000
Thickener Reducing water content 1,20,000
Paper Sheet Former Forming paper from pulp 3,50,000
Pressing Machine Pressing and drying 2,00,000
Cutting Machine Sheet cutting 90,000
Packing Machine (optional) Packaging paper sheets 1,20,000

Projected cost of Total Set-up: 18-25 Lakhs @ lakh of capacity and profitability of automation.

Another: ETP system, drying racks, water tanks, raw material storage

Recycling Paper by Flow Process

  • Collection & Sorting: Collect discarded paper in schools, offices and industry wastes and kabadiwalas—lump together, as white paper, cardboard, newspaper, etc.
  • Shredding & Pulping: Paper is pulped by shredding it and adding more water and chemicals via a pulper.
  • De-Inking: The removal of ink takes place by employing surfactants, air bubbles, and de-inking machines.
  • Screening & Cleaning: Pulp is run through filters to remove any contaminants, such as pins, plastics, staples, etc.
  • Thickening & Drying: An excess of water is drained, and pulp is thickened.
  • Sheet Formation: Pulp is laid on mesh to obtain sheets.
  • Pressing & Cutting: The sheets are pressed, dried and cut to desirable dimensions.
  • Packing & Dispatch: The finished product is packed off to wholesalers or consumers.

Market Overview

  • India consumes in excess of 20 million tonnes of paper with a growth rate of 67 per cent each year.
  • More than 30 per cent of recycled paper is supplied to meet the demand for paper.
  • Examples of use include packaging, notebooks, tissue paper, office stationery, cartons, and corrugated boxes.
  • Government prohibitions against single-use plastics have boosted the demand for recycled paper products.
  • The limitation of the importation of waste paper further provides a local recycling-related opportunity.

EPR Benefits (Extended producer responsibility)

If you produce recycled paper-based packaging, you may qualify for EPR registration in 2026, after the act is notified.

Benefits include:

  • Selling EPR credits to brand owners and producers
  • Join an Ecosystem of certified plastic/paper waste management
  • Adhere to the CPCB packaging waste requirements
  • Pull environmentally friendly purchasers and tenders (government and non-governmental)

CERTILIZE will assist in getting the required Registration, perfecting returns and remaining in compliance.

So why CERTILIZE?

  • We offer end-to-end support
  • Registration of business entity and MSME
  • Selection of the site and organisation of the site
  • Bank loans or investor preparation of DPR
  • Pollution control Landing (CTE/CTO)
  • Selection and purchase of machinery
  • Supervision of installation
  • Factory license and local clearances
  • EPR and CPCB compliance edification

Our contributions have failed to put in place and ensure satisfactory performance of over 100 plants in the field of recycling and waste management solutions, which have been felt in India without any doubts of failure in performance.

Frequently Asked Questions

  • How big of a piece of land does a small paper recycling plant need?

    Operations, storage and machinery set-up should be undertaken in at least 5,000 to 7,000 sq. ft.

  • How much do I need to get started on a paper recycling business?

    About 20 - 25 lakhs of Machine and simple infrastructure to set a 12 TPD plant.

  • Can I begin after renting premises?

    Yes, though you have to submit a legitimate rent agreement and NOCs when applying to a pollution board.

  • Do all recyclers of paper need EPR?

    Not to everyone, but when your final product is within the structure of packaging, then EPR under CPCB can be used.

  • Does this business have to be subject to GST?

    Yes. GST will be required to sell to wholesalers or businesses.

  • Where do I buy waste paper?

    Through municipal waste collection systems, scrap dealers, paper mills and institutional suppliers.

  • How much time does licensing take?

    The time scale is approximately 45 to 60 days for all the licenses, including CTE, CTO, Trade license, and Factory license.

  • Do I require an ETP or water treatment plant?

    Yes. Processes that are water demanding, such as de-inking or pulping, require an Effluent Treatment Plant.

  • Are the export of recycled papers allowed?

    Yes. Recycled paper is needed in Southeast Asia, the Middle East, and Africa to be utilised by the packaging industry.

  • Is CERTILIZE useful in the assistance of funding or subsidy applications?

    Yes. We also prepare DPRs for bank loans and assist in availing MSME and sustainability-based subsidies.

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