Masood Mallick, Managing Director and Group CEO of Re Sustainability Limited, and Bankim Patra, Country Head Lubes at Indian Oil Corporation Limited, outlined a plan targeting 100 KTA annual used oil collection supported by nationwide recovery and re refining infrastructure.
India’s efforts to build a structured circular economy for industrial resources are gaining momentum with a new collaboration focused on the recovery and recycling of used lubricating oil. Re Sustainability has signed a Memorandum of Understanding with Indian Oil Corporation Limited to establish a national ecosystem designed to collect, process, and recycle used lubricant oil across the country.
The partnership aims to create a structured system that enables the recovery and re refining of used lubricants, helping reduce reliance on crude derived base oils while supporting more efficient use of resources. The initiative is expected to contribute to India’s broader transition toward a low carbon and resource efficient economy by strengthening systems that manage industrial waste streams.
The collaboration will involve the creation of a Special Purpose Vehicle that will develop a nationwide reverse logistics and collection network for used lubricating oil. The platform will aggregate lubricants from automotive and industrial sectors and enable the development of advanced re refining infrastructure capable of producing Group I and Group II plus 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. By formalising the collection and recycling of used oil, we are supporting a more resource efficient and sustainable energy ecosystem for India.”
Recovered lubricating oil under the initiative will be processed into Re Refined Base Oil, which can be reintroduced into lubricant manufacturing value chains. The circular approach reduces dependence on virgin crude derived base oils while improving material efficiency within the lubricants sector.
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. 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 outlines a target annual collection capacity of 100 KTA of used lubricating oil supported by a nationwide network of aggregation points, logistics systems, and traceability platforms designed to ensure systematic recovery and monitoring.
As part of the initiative, the partners will establish a re refining facility at mutually agreed locations. The facility will include new infrastructure along with upgrades to existing installations designed to process used lubricating oil and convert it into Group II Re Refined Base Oil meeting Bureau of Indian Standards and international specifications.
The proposed facility is expected to process between 50 and 100 KTA of used lubricating oil and is targeted for commissioning within the next three years. The project is intended to form the operational foundation for a scalable national oil recovery ecosystem under the partnership.
The collaboration will also include the recovery and recycling of plastic lubricant containers in line with Extended Producer Responsibility requirements under India’s environmental regulations, supporting responsible lifecycle management of lubricant packaging.
India currently generates around 1.3 million tonnes of used lubricating oil each year, while only about 0.2 million tonnes is recovered through formal recycling systems. The new initiative is expected to expand formal recovery infrastructure and unlock the resource value of used lubricants while advancing the country’s transition toward a circular and resource efficient lubricant economy.
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