Re Sustainability has signed a Memorandum of Understanding (MoU) with Indian Oil Corporation Limited to establish India’s first structured, nationwide initiative for the collection and recycling of used lubricating oil. The collaboration marks a significant step toward building a circular ecosystem for lubricant management while accelerating India’s transition to a resource-efficient and low-carbon economy.
Driving Circular Economy Through Industry Collaboration
The partnership highlights how strategic industry collaboration can enable circular resource flows and strengthen environmental governance. By focusing on systematic recovery and re-refining of used lubricants, the initiative will, Reduce dependence on virgin crude-derived base oils, conserve natural resources, lower foreign exchange outflows. As a result, the project contributes to both sustainability goals and energy security.
SPV to Enable Nationwide Collection and Logistics
To ensure efficient implementation, the partners will establish a dedicated Special Purpose Vehicle (SPV). This entity will develop a robust nationwide reverse logistics network for used oil collection.
Furthermore, the platform will aggregate used lubricants from industrial and automotive sectors, ensuring better traceability and compliance. At the same time, it will support the creation of advanced re-refining infrastructure in collaboration with technology partners.
Advanced Re-Refining to Produce High-Quality Base Oils
Under the initiative, recovered oil will be processed into Re-Refined Base Oil (RRBO), which can be reintroduced into lubricant manufacturing value chains. Consequently, this circular approach enhances material efficiency while reducing reliance on virgin feedstocks. In addition, the project will combine new infrastructure with upgrades to existing facilities, creating a scalable and efficient recycling ecosystem.
Strengthening Compliance Through EPR Integration
Beyond oil recycling, the initiative will also focus on the recovery and recycling of plastic lubricant containers. This aligns with India’s Extended Producer Responsibility (EPR) regulations, ensuring responsible lifecycle management of lubricant packaging. Therefore, the project not only addresses oil recovery but also enhances compliance across the broader lubricant value chain.
Bridging the Gap in India’s Used Oil Recovery
Currently, India generates around 1.3 million tonnes of used lubricating oil annually. However, only about 0.2 million tonnes is processed through formal recycling channels. The initiative aims to significantly expand formal recovery infrastructure and bring more used oil into organised recycling systems. As a result, it will unlock the untapped resource value of used lubricants while improving environmental outcomes.
Leadership Perspective on Sustainability and Energy Security
According to Bankim Patra, Country Head (Lubes) at Indian Oil, the collaboration reflects the company’s commitment to advancing both energy security and environmental responsibility. He emphasised that formalising used oil collection and recycling will enable more sustainable value chains and support a resource-efficient energy ecosystem.
Accelerating India’s Circular Lubricant Economy
Overall, the partnership between Re Sustainability and IOCL represents a transformative step in India’s lubricant sector. By integrating collection, logistics, and advanced re-refining technologies, the initiative lays the foundation for a circular and sustainable oil economy. As reported by indianweb2.com, in the long run, it will reduce import dependence, improve resource efficiency, and position India as a leader in circular economy practices within the energy and materials sector.
