Wedoany.com Report on Mar 16th, Re Sustainability has signed a Memorandum of Understanding with Indian Oil Corporation Limited to launch India's first nationwide program for used lubricating oil collection and recycling. This collaboration aims to establish a circular economy for used lubricants, enhance resource efficiency, reduce dependence on imported crude oil, and strengthen India's sustainable infrastructure.
The partners will establish a Special Purpose Vehicle to build a nationwide network for collecting used engine oil. By integrating automotive and industrial sources, the joint venture will develop high-tech refining facilities to convert waste oil into re-refined base oil.
Bankim Patra, National Head of Lubricants Business at Indian Oil Corporation Limited, stated: "As a leading energy company in India, we are committed to advancing energy security and environmental responsibility. This collaboration supports the establishment of a sustainable value chain for lubricant recovery and recycling, promoting a resource-efficient energy ecosystem."
The collected oil will be processed into re-refined base oil, re-entering the lubricant manufacturing value chain. This circular approach reduces reliance on virgin crude oil and improves material efficiency.
Masood Mallick, Managing Director of Re Sustainability, noted: "India's transition to a circular economy requires large-scale, systematic recovery of value from waste streams. The partnership with Indian Oil is a crucial step towards structured waste oil recovery, facilitating the shift from waste management to resource recovery by establishing an integrated ecosystem."
The MoU targets the collection of 100 kilotonnes of used lubricating oil annually, achieved through a nationwide collection and logistics system. The partners will establish advanced re-refining facilities at selected locations to process waste oil and produce re-refined base oil meeting international standards.
The facility's processing capacity is projected to be 50-100 kilotonnes, with operations planned to commence within the next three years, laying the groundwork for a scalable recycling system. The initiative also includes the recycling of plastic lubricant containers, aligning with Extended Producer Responsibility requirements and enhancing packaging lifecycle management.
India generates approximately 1.3 million tonnes of used lubricating oil annually, with only 200,000 tonnes currently recycled through formal channels. This program aims to expand recycling infrastructure, unlock the resource value of used lubricants, and drive India's transition towards a circular, sustainable lubricant economy.
