Re Sustainability and Indian Oil Corporation Limited have signed an MoU to launch India's first structured, national-scale initiative for collecting and recycling used lubricating oil. This partnership establishes a circular economy for lubricant waste, fostering a resource-efficient, low-carbon future, and strengthening India’s sustainable infrastructure.

This partnership pioneers a sustainable, circular model by establishing systematic used-lubricant recovery and re-refining. It boosts environmental governance, builds resilient infrastructure, reduces dependence on imported virgin crude, and conserves resources, showcasing how collaboration drives industrial sustainability and economic efficiency.

The partners are launching a Special Purpose Vehicle (SPV) to build a national network for collecting and recycling used engine oil. By tapping into automotive and industrial sources, the venture—supported by Re Sustainability—will develop high-tech refining facilities to transform waste oil into high-quality Group I and Group II+ Re-Refined Base Oil (RRBO).

Bankim Patra, Country Head (Lubes), Indian Oil Corporation Limited, said: “As India’s largest integrated energy company, Indian Oil is committed to advancing solutions that strengthen both energy security and environmental responsibility. This collaboration reflects our commitment to building sustainable value chains that enable responsible recovery, reuse, and circular utilisation of lubricants. By formalising the collection and recycling of used oil, we are supporting a more resource-efficient and sustainable energy ecosystem for India.”

Under the collaboration, recovered oil will be processed to produce Re-Refined Base Oil (RRBO) which can be reintroduced into lubricant manufacturing value chains. This circular approach significantly reduces dependence on virgin crude-derived base oils while strengthening material efficiency across the lubricants sector.

Speaking on the collaboration, Masood Mallick, Managing Director & Group CEO, Re Sustainability Limited, said: “India’s journey towards a circular economy requires large-scale systems that can recover value from complex waste streams and reintegrate them into productive use. Our partnership with Indian Oil marks a transformative step towards institutionalising structured oil recycling in India. By building an integrated ecosystem for used lubricant recovery and re-refining, we are enabling the transition from waste management to resource recovery while strengthening India’s environmental infrastructure and circular economy.”

The MoU is signed, with a targeted annual collection of 100 KTA (kilotonnes per annum) of used lubricating oil supported by a structured nationwide network of aggregation, logistics, and traceability systems.

As part of the initiative, the partners will establish a state-of-the-art re-refining facility at mutually agreed locations. The project will include both the development of new infrastructure and the upgrade of existing facilities designed to process used lubricating oil and convert it into Group II Re-Refined Base Oil (RRBO) meeting Bureau of Indian Standards (BIS) and international specifications.

The facility is expected to have a processing capacity of 50–100 KTA and is targeted to be commissioned within the next three years, forming the foundation for a scalable oil recovery and circular recycling ecosystem under the partnership.

The initiative will also include recovery and recycling of plastic lubricant containers, aligned with Extended Producer Responsibility (EPR) requirements under India’s environmental regulations, thereby strengthening compliance and enabling responsible lifecycle management of lubricant packaging.

India currently generates approximately 1.3 million tonnes of used lubricating oil annually, of which only around 0.2 million tonnes is recovered through formal recycling channels. This initiative aims to significantly expand formal recovery infrastructure, unlock the resource value of used lubricants, and accelerate India’s transition toward a circular, resource-efficient, and sustainable lubricant economy.