Re Sustainability Limited (ReSL) has entered into a Memorandum of Understanding (MoU) with Indian Oil Corporation Limited (IndianOil) to develop a nationwide system for the structured collection and recycling of used lubricating oil. The partnership represents a major step toward creating a circular economy framework for lubricant management in India while supporting the country’s broader environmental and resource efficiency goals.
The collaboration aims to address the growing challenge of managing used lubricating oil by establishing a formal ecosystem for its recovery, processing, and reintegration into industrial supply chains. Through this initiative, the two organizations intend to create a system that captures the value of used oil and converts it into reusable base oil, reducing dependence on crude-derived raw materials.
A central element of the partnership is the creation of a Special Purpose Vehicle (SPV) that will oversee the development of a nationwide reverse logistics network for collecting used lubricating oil. The system will gather used oil from both industrial and automotive sources and channel it into advanced recycling facilities.
The recovered oil will be processed into Re-Refined Base Oil (RRBO), which can be reused in lubricant production. This approach helps reduce the need for fresh crude-based base oils while supporting more efficient use of existing resources.
Bankim Patra, Country Head (Lubes) at Indian Oil Corporation Limited, said the initiative reflects the company’s ongoing commitment to combining energy security with environmental responsibility. “As India’s largest integrated energy company, Indian Oil continues to explore solutions that strengthen sustainable resource management. This collaboration aims to establish an organized framework for collecting and recycling used oil while promoting responsible reuse of valuable resources within the energy ecosystem,” he said.
Under the proposed framework, the collected used oil will undergo re-refining processes to produce Group I and Group II+ base oils, which can be reintroduced into lubricant manufacturing supply chains. These products will meet Bureau of Indian Standards (BIS) requirements and relevant international quality standards.
Masood Mallick, Managing Director and Group CEO of Re Sustainability Limited, said the partnership represents an important milestone in India’s transition toward a circular economy. “India’s shift toward resource-efficient growth requires systems capable of recovering value from complex waste streams. Our partnership with Indian Oil is focused on developing an integrated ecosystem for used oil recovery and re-refining. This initiative moves the sector beyond traditional waste disposal practices and toward large-scale resource recovery,” he said.
The project targets the collection of approximately 100 kilotonnes of used lubricating oil annually, supported by a structured national network of aggregation points, logistics infrastructure, and traceability systems. As part of the initiative, the partners plan to establish a modern re-refining facility at mutually agreed locations. The plant is expected to have a processing capacity between 50,000 and 100,000 tonnes per year and is targeted to become operational within the next three years.
The project will involve both the development of new facilities and the upgrading of existing infrastructure capable of processing used lubricating oil into high-quality base oil products. In addition to oil recovery, the initiative will address the recycling of plastic lubricant containers in accordance with India’s Extended Producer Responsibility (EPR) regulations. This component of the project will support responsible lifecycle management of lubricant packaging and improve compliance with environmental standards.
India generates an estimated 1.3 million tonnes of used lubricating oil annually, yet only about 200,000 tonnes are currently recovered through formal recycling channels. Much of the remaining oil is handled through unregulated or inefficient disposal practices. By expanding formal collection and recycling infrastructure, the partnership aims to significantly increase the volume of used oil recovered and processed within regulated systems.
Re Sustainability Limited is one of Asia’s largest providers of integrated environmental solutions, operating more than 100 facilities across India, Singapore, the UAE, Saudi Arabia, Qatar, Oman, Kuwait, Tanzania, and the United States. Backed by KKR, the company focuses on waste management, resource recovery, and sustainability infrastructure.
Indian Oil Corporation Limited, a Maharatna public sector enterprise under the Ministry of Petroleum and Natural Gas, is India’s largest integrated energy company. Headquartered in New Delhi, the company operates across the hydrocarbon value chain, including refining, pipeline transportation, fuel marketing, petrochemicals, natural gas, and exploration. Ranked among the Fortune Global 500 companies, Indian Oil continues to invest in cleaner fuels, renewable energy, and emerging technologies as part of its long-term strategy to support a more sustainable energy future.
