MUMBAI — Re Sustainability has signed a partnership with Indian Oil Corporation to launch India’s first integrated system to collect, recycle, and reuse used lubricating oil across the country.
The initiative aims to build a nationwide network to recover used oil from industries and vehicles. It will convert the collected oil into reusable base for new lubricant production.
Why the partnership is important?
India produces large amount of used lubricating oil every year, to the tune of about 1.3 million tonnes each year. But only a small share, approximately around 0.2 million tonnes it recovers through organized recycling systems.
By improving collection, recycling and reusing lubricating oil, Re Sustainability and Indian Oil want to establish India’s first integrated used oil circular economy ecosystem. The initiative aims to shift the focus from waste management to resource recovery. The initiative could help reduce pollution, conserve resources, and lower dependence on crude-based raw materials used in lubricant manufacturing.
What does the partnership plan to do?
The two companies plan to set up a special purpose vehicle (SPV) to build a nationwide collection and logistics system for used lubricating oil.
The initiative will collect used oil from both the automotive and industrial sectors. Specialized facilities will refine the collected oil into re-refined base oil (RRBO) for producing new lubricants.
The project aims to collect up to 100 kilotonnes of used oil per year and build a re-refining plant with a processing capacity of 50–100 kilotonnes (KTA) annually.
The partners will also work on recovering and recycling plastic lubricant containers to meet India’s Extended Producer Responsibility (EPR) requirements.
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 energy security and environmental responsibility. This collaboration supports the creation of sustainable value chains for responsible recovery, reuse, and circular utilisation of lubricants.
Growing focus on circular economy
Recycling used oil is becoming an important part of the circular economy in the energy and lubricant sectors. Re-refining helps recover valuable oil resources instead of discarding or burning them, reducing environmental damage and conserving natural resources.
Companies and regulators are increasingly promoting structured systems to ensure safe collection and recycling of lubricant waste.
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 oil recycling at industrial scale 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.
Industry support
Indian Oil said the partnership supports its goal of building sustainable energy value chains and strengthening responsible recovery and reuse of lubricants.
Re Sustainability said the collaboration will help build large-scale systems that recover valuable resources from complex waste streams and return them to productive use.
What happens next?
The partners plan to develop the collection network and build the re-refining facility over the next few years. This will help create a structured ecosystem for used oil recycling in India.
If successful, the initiative could significantly expand formal recycling of used lubricating oil. It could also support India’s transition toward a more resource-efficient circular economy.
