India’s First Bio-plastic Plant to Be Set Up in Kumbhi, Uttar Pradesh

Bio-plastic plant in UP

In a major step towards sustainable industrial growth, Balrampur Chini Mills Ltd (BCML) is set to establish India’s first bio-plastic manufacturing facility in Kumbhi, Uttar Pradesh. Slated for completion by October next year, the plant will produce Polylactic Acid (PLA), a biodegradable alternative to conventional plastics, reinforcing India’s position as a leader in eco-friendly manufacturing.

The ₹2,850 crore project, located adjacent to BCML’s existing sugar factory, will operate entirely on renewable energy. This state-of-the-art facility will be the world’s first to integrate the entire PLA production process—converting sugarcane into sugar and then into bio-plastic—on a single site.

Government Backing & Industry Impact

Uttar Pradesh Chief Minister Yogi Adityanath laid the foundation stone on February 22, reaffirming the government’s commitment to green industries. Under the state’s Bioplastic Industry Policy, a dedicated bioplastic cluster will be developed around BCML’s anchor unit to promote sustainable manufacturing.

“This plant is a milestone in India’s journey towards self-reliance and environmental responsibility,” said BCML Chairman & MD Vivek Saraogi. “By scaling PLA production, we are reducing dependence on fossil fuels and setting new benchmarks in responsible manufacturing.”

Transforming Plastic Usage & Job Creation

With an annual capacity of 80,000 tonnes, the plant will utilize 70% of BCML’s sugar output from Kumbhi. PLA, a sustainable substitute for single-use plastics, can replace everyday items like straws, cutlery, food trays, and carry bags. It can also be converted into biogas and fertilizer, addressing both waste management and energy needs.

The project is expected to generate 225 direct jobs in manufacturing, R&D, and operations, while creating 2,000 indirect jobs across the value chain. “This initiative highlights the synergy between progressive policy frameworks and private sector innovation,” said Avantika Saraogi, BCML’s Executive Director. “It will position Uttar Pradesh as a hub for biopolymer production, driving industrial growth and placing India at the forefront of the global bio-based economy.”

With 10 sugar factories across Uttar Pradesh, BCML is one of India’s largest integrated sugar producers, further solidifying its role as a pioneer in sustainable manufacturing.

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