State-backed partnership aims to process 1 lakh tonnes of plastic waste annually and strengthen India’s recycled materials ecosystem
In a bid to strengthen India’s circular economy ecosystem, Recove Ventures Private Limited has signed a Memorandum of Understanding (MoU) with the Department of Industries, Government of Maharashtra to develop large-scale plastic recycling and circular manufacturing infrastructure across the state over the next decade.
The agreement was signed at Mantralaya in Mumbai between Dr. P. Anbalagan, Principal Secretary, Industries, Investment and Services, Government of Maharashtra, and Recove Ventures Co-Founders Kunal Kumar and Viral Chhajer.
The signing was followed by a meeting with Devendra Fadnavis, who reiterated Maharashtra’s commitment to accelerating circular economy initiatives and sustainable industrial growth.
Under the 10-year framework, Recove Ventures plans to invest more than Rs. 500 crore in waste processing, recycling, material recovery, aggregation, and allied circular manufacturing activities in Maharashtra. The company aims to establish processing capacity for 5,000 tonnes of plastic waste per month in the initial phase, with long-term expansion targeting up to 1,00,000 tonnes annually.
India’s Plastic Recycling Sector Faces a Critical Opportunity
The partnership comes at a time when India’s recycling industry is under increasing pressure to scale operations due to Extended Producer Responsibility (EPR) regulations.
Brands are currently required to incorporate nearly 30% recycled plastic content into packaging and products, a figure expected to rise to approximately 60% within the next few years.
While PET recycling in India has achieved nearly 95% recovery rates, polymers such as HDPE and PP — widely used in packaging, automotive components, and consumer goods — continue to remain significantly under-recycled at below 30%.
Industry experts warn that India could lose recyclable materials worth nearly USD 36 billion between 2025 and 2030 if collection and processing gaps are not addressed.
Speaking on the development, Viral Chhajer, Co-Founder of Recove Ventures, said the company is focused on creating long-term industrial infrastructure rather than isolated recycling units.
“We are building the durable infrastructure that takes post-consumer plastic out of the dump yard and brings it back into the economy as industrial-grade raw material,” he stated.
Jalgaon to Host First Anchor Recycling Facility
The first major project under the MoU will be an advanced HDPE and PP recycling facility at Additional Jalgaon MIDC in Maharashtra’s Jalgaon district, classified as a priority D+ industrial zone.
The project will involve an investment of more than Rs. 35 crore and feature an installed recycling capacity of 1,100 tonnes per month.
The facility will deploy advanced extrusion and granulation technologies, including deep-vacuum deodorisation systems, to produce industrial-grade recycled plastic granules capable of replacing virgin plastic in packaging, automotive, and consumer goods manufacturing.
Commissioning is expected between October and December 2026. The project is projected to create around 100 direct jobs and more than 1,500 indirect employment opportunities in the region.
To support the rollout of circular economy projects, the Maharashtra government has committed to facilitating priority land allotment in MIDC zones and future Circular Economy Parks, along with single-window clearances and faster consideration of industrial incentives.
Maharashtra as Circular Economy Hub
Dr. P. Anbalagan said the partnership aligns with Maharashtra’s strategy of integrating sustainability with industrial development.
“Maharashtra is committed to building a future-ready industrial ecosystem that integrates sustainability with economic growth,” he said, adding that the state sees strong potential for scaling circular economy projects across multiple industrial clusters.
Co-Founder Kunal Kumar, a former IAS officer and ex-Mission Director of India’s Smart Cities Mission, highlighted the importance of long-term policy frameworks in enabling large-scale investments in recycling infrastructure.
According to Kumar, recycling at scale requires coordination across land allocation, approvals, supply chains, labour, and market demand — factors that become easier to address through long-term state partnerships instead of project-by-project approvals.
Expanding Operations Across India
Recove Ventures has already begun expanding its operational footprint in Maharashtra. Its pre-processing facility in Pune started test operations in April 2026 and is currently scaling up. The company’s flagship Bengaluru facility, operational since late 2025, is processing more than 415 tonnes of plastic waste per month.
The startup claims to have achieved a 12-fold increase in monthly revenue over the past six months while serving more than 30 recyclers with a repeat order rate of nearly 90%.
Recove’s founding team combines startup, policy, and infrastructure expertise. Viral Chhajer previously co-founded StayAbode and Smartstaff and was part of the founding team at Runnr. Kunal Kumar served in multiple senior government roles, including as Joint Secretary and Mission Director of India’s Smart Cities Mission between 2018 and 2024.
The company is backed by Momentum Capital, Ganesh Natarajan, and several angel investors including Chaitanya Kejriwal and Ashish Goel.
India’s transition toward a circular economy is becoming increasingly critical as plastic waste generation continues to rise alongside rapid urbanisation and consumption growth. Investments in organised recycling infrastructure could help reduce landfill dependence, lower fossil fuel consumption linked to virgin plastic production, and support India’s broader climate and sustainability commitments.
The Maharashtra–Recove partnership signals growing alignment between policymakers and private industry to formalise recycling supply chains and create scalable industrial ecosystems capable of handling future waste management challenges.