IFC to Finance Paper Mill Expansion Projects in India

Feed: 31 - Date: 7/8/2007 - Views: 919

The International Finance Corporation (IFC), the private sector arm of the World Bank Group, will provide a long-term loan of $40 million to fund the Karnataka, India-based West Coast Paper Mills Ltd’s modernization and expansion plans, according to a news story in The Hindu Business Line.

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Part of the loan will fund the installation of a new chlorine-free pulp manufacturing line at the company's mill in Dandeli, Karnataka, the story said.

"The paper industry has been highly fragmented, with a capacity of 6.8 million tonnes per year distributed among over 500 players, most of whom are informal companies," said S.K. Bangur, chairman of West Coast Paper Mills Ltd.

"Plans by several players to consolidate and expand are underway. With IFC’s support, we hope to improve the sector’s efficiency and enhance our competitiveness,” he added.

The key demand drivers for paper consumption in India are increases in the gross domestic product, literacy levels, corporate spending and industrial activity. Per capita consumption is estimated at 7 kgs per year, the lowest in the world and far below the global average of 56 kg per year, the news story stated.

SOURCE: The Hindu Business Line

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