India Launches First PLA Bioplastic Plant

India has taken a significant step towards sustainable manufacturing with the launch of its first fully integrated polylactic acid (PLA) bioplastic plant by Balrampur Chini Mills Limited (BCML). Named Balrampur Bioyug, this initiative transforms sugarcane into a compostable, eco-friendly alternative to traditional plastics, supporting the country’s environmental goals.

Located in Kumbhi, Uttar Pradesh, the Bioyug plant is strategically positioned next to BCML’s existing sugar mill. With an investment of ₹2,850 crore, the facility will produce 80,000 tonnes of PLA annually, using sugarcane derivatives in a process powered entirely by renewable energy. This marks the world’s first fully integrated PLA production site, converting sugarcane directly into bioplastic in a single location. The plant is expected to begin operations in October 2026, offering a scalable solution to reduce reliance on fossil-based plastics.

PLA is a bio-based, compostable material that emits 68% less carbon dioxide over its lifecycle compared to conventional plastics. It can replace single-use plastic items like straws, food trays, and disposable cutlery, which face regulatory bans in India. The material’s versatility extends to applications in packaging, food service, biomedical, textiles, and 3D manufacturing. By using sugarcane, a major crop in northern India, the plant creates new revenue streams for farmers and integrates agriculture with advanced manufacturing.

The Bioyug initiative aligns with India’s sustainability objectives, including its target of net-zero emissions by 2070. The plant’s closed-loop, renewable energy-powered process enhances resource efficiency and reduces environmental impact. It also supports the circular economy by linking rural agriculture to industrial innovation. The facility is expected to generate 225 jobs and encourage small-scale industries to produce eco-friendly products using PLA.

BCML has partnered with global technology providers, including Sulzer from Switzerland, Alpine Engineering GmbH from Austria, and Jacobs Solutions Inc from the U.S., to ensure cutting-edge production capabilities. The project also benefits from Uttar Pradesh’s bioplastic policy, which offers incentives like capital subsidies and stamp duty exemptions. These measures strengthen the venture’s viability and encourage further investment in sustainable materials.

The plant’s output is projected to generate ₹1,700–1,800 crore in revenue by FY 2027–28, with PLA contributing to over 50% of BCML’s non-sugar business. This diversification reduces the company’s reliance on traditional sugar and ethanol markets. India’s abundant sugarcane resources position it well to lead in the global bioplastics market, which currently accounts for just 1% of total plastic production but has significant growth potential.

Challenges remain, including the need for robust composting infrastructure and stricter enforcement of single-use plastic bans. BCML is advocating for policy support to stimulate market demand and level the playing field against cheaper imports. The company also aims to engage brand owners and manufacturers to promote PLA adoption across industries.

This pioneering project positions India as a potential leader in biopolymer technology. By harnessing sugarcane for sustainable materials, Bioyug not only addresses plastic pollution but also strengthens rural economies and supports national climate goals. The initiative reflects a broader shift towards green manufacturing, with the potential to inspire similar efforts across the country.

Source: The Economic Times