Re Sustainability has signed a Memorandum of Understanding (MoU) with Indian Oil Corporation Limited (IOCL) to launch what the companies describe as India’s first structured national initiative for the collection and recycling of used lubricating oil.
The partnership aims to build a circular ecosystem for lubricant oil management by establishing a nationwide system for the recovery and re-refining of used lubricants, reducing reliance on virgin crude-derived base oils and improving resource efficiency.
Under the agreement, the partners will set up a Special Purpose Vehicle (SPV) to create a national reverse logistics and collection network for used lubricating oil from the industrial and automotive sectors. The initiative will also develop infrastructure to produce Re-Refined Base Oil (RRBO)—including Group I and Group II+ base oils—from recovered lubricants.
Bankim Patra, Country Head (Lubes) at 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.”
He added that formalising the collection and recycling of used oil would support a more resource-efficient energy ecosystem in India.
Masood Mallick, Managing Director and Group CEO of 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.”
The initiative targets the annual collection of 100 kilotonnes (KTA) of used lubricating oil through a nationwide network of aggregation, logistics and traceability systems.
As part of the project, the partners plan to establish a re-refining facility with a capacity of 50–100 KTA, expected to be commissioned within the next three years. The facility will convert used lubricants into base oils that meet Bureau of Indian Standards (BIS) and international specifications.
The programme will also include the recovery and recycling of plastic lubricant containers to meet Extended Producer Responsibility (EPR) requirements under India’s environmental regulations.
India generates around 1.3 million tonnes of used lubricating oil annually, but only about 0.2 million tonnes is currently recovered through formal recycling channels. The initiative aims to expand recovery infrastructure and strengthen the country’s circular lubricant economy.
