Re Sustainability, Indian Oil Partner to Build Used Oil Recycling Ecosystem in India

MoU aims to establish circular economy for lubricants with nationwide collection and re-refining infrastructure

Mumbai: Re Sustainability Ltd has signed a memorandum of understanding with Indian Oil Corporation to develop a nationwide ecosystem for the collection and recycling of used lubricating oil, marking a major step toward building a circular economy in the lubricant sector.

The partnership aims to create India’s first structured national initiative for systematic recovery and re-refining of used lubricants, reducing dependence on crude-derived base oils while improving resource efficiency and environmental sustainability.

Under the collaboration, the two companies plan to establish a special purpose vehicle to develop a nationwide reverse logistics and collection network for used lubricating oil from industrial and automotive sectors. The initiative will aggregate recovered lubricants and process them into re-refined base oil (RRBO) that can be reused in lubricant manufacturing value chains.

The partners also plan to develop a state-of-the-art re-refining facility with a processing capacity of 50–100 kilotonnes per annum, expected to be commissioned within the next three years. The project aims to achieve an annual collection target of up to 100 kilotonnes of used lubricating oil through a nationwide network of aggregation and logistics systems.

Bankim Patra, Country Head (Lubes), IOCL, said the collaboration reflects Indian Oil’s commitment to strengthening sustainable value chains and enabling responsible recovery and reuse of lubricants while supporting energy security and environmental sustainability.

Masood Mallick, Managing Director & Group CEO, Re Sustainability, said the partnership represents a transformative step toward institutionalising structured oil recycling in India and enabling large-scale recovery of valuable resources from complex waste streams.

The initiative will also include recycling of plastic lubricant containers in line with extended producer responsibility (EPR) regulations, ensuring responsible lifecycle management of lubricant packaging.

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 partnership aims to expand formal recovery infrastructure and unlock the resource value of used lubricants while strengthening India’s circular economy ecosystem.

Re Sustainability Limited, backed by KKR, operates environmental and sustainability solutions across multiple countries, while Indian Oil Corporation is India’s largest integrated energy company operating across the hydrocarbon value chain.