India's First Integrated Used Oil Circular Economy Ecosystem: Re Sustainability and Indian Oil Collaborate

In Mumbai, Re Sustainability Limited has entered into a Memorandum of Understanding (MoU) with Indian Oil Corporation Limited to launch India’s first structured nationwide initiative for the collection and recycling of used lubricating oil. This collaboration represents a major step toward building a circular ecosystem for lubricant management and supporting the country’s shift to a resource-efficient, low-carbon economy.

The partnership highlights the role of industry collaboration in enabling circular resource flows, improving environmental governance, and strengthening future-ready energy and material systems. By promoting the systematic recovery and re-refining of used lubricants, the initiative aims to reduce dependence on virgin crude-based base oils, conserve natural resources, and lower foreign exchange outflows.

A key focus of the collaboration is the creation of a Special Purpose Vehicle (SPV) to develop a nationwide reverse logistics and collection network for used lubricating oil. This platform will aggregate waste oil from industrial and automotive sectors and support the development of advanced re-refining infrastructure to produce Group I and Group II+ Re-Refined Base Oils (RRBO) in collaboration with technology partners.

Bankim Patra, Country Head (Lubes) at Indian Oil, stated that the initiative aligns with the company’s commitment to enhancing energy security and environmental responsibility. He emphasized that formalizing used oil collection and recycling will enable more sustainable value chains and contribute to a resource-efficient energy ecosystem in India.

Under the agreement, collected used oil will be processed into RRBO, which can be reintroduced into lubricant manufacturing. This circular approach not only reduces reliance on crude-derived base oils but also improves material efficiency across the sector.

Masood Mallick, Managing Director and Group CEO of Re Sustainability, described the partnership as a transformative step toward institutionalizing structured oil recycling in India. He noted that building an integrated recovery and re-refining ecosystem will shift the focus from waste disposal to resource recovery while strengthening the country’s environmental infrastructure.

The initiative targets an annual collection capacity of 100 KTA (kilotonnes per annum) of used lubricating oil through a well-organized national network for aggregation, logistics, and traceability.

As part of the project, the partners plan to set up a state-of-the-art re-refining facility at mutually agreed locations. The facility, with an expected capacity of 50–100 KTA, will process used oil into high-quality Group I and Group II+ RRBO meeting Bureau of Indian Standards and international specifications. It is expected to be commissioned within the next three years, forming the backbone of a scalable circular oil recovery ecosystem.

Additionally, the initiative will include the collection and recycling of plastic lubricant containers in line with Extended Producer Responsibility (EPR) regulations, ensuring responsible lifecycle management of packaging materials.

Currently, India generates around 1.3 million tonnes of used lubricating oil annually, but only about 0.2 million tonnes is recovered through formal channels. This initiative aims to significantly expand organized recovery systems, unlock the value of used oil, and accelerate the country’s transition toward a more sustainable and circular lubricant economay.

The detailed article is published by https://www.indiasnews.net/ can be accessed from https://www.indiasnews.net/news/278920161/re-sustainability-and-indian-oil-join-hands-to-create-india-first-integrated-used-oil-circular-economy-ecosystem?utm_source=chatgpt.com