Indian Oil and Re Sustainability Launch Groundbreaking Oil Recycling Initiative

Major Collaboration for a Sustainable Future On **March 13, 2026**, a groundbreaking partnership was established between **Re Sustainability** and **Indian Oil Corporation Limited** aimed at launching India’s first organized initiative for the collection and recycling of used lubricating oil. This collaboration represents a pivotal move towards creating a **circular economy** for lubricant management in India, ultimately facilitating the nation's shift towards a **resource-efficient** and **low-carbon** economy.

This strategic alliance signifies a major step in harnessing industry synergies to promote circular resource flows. By integrating environmental governance with energy solutions, the collaboration aims to fortify the nation’s infrastructure for energy and materials, ensuring a sustainable future. The initiative will systematically recover and re-refine used lubricants, significantly decreasing dependency on virgin crude oil and minimizing the depletion of natural resources. This also aims to offset foreign exchange outflows, thereby benefiting the economy.

Establishing a Nationwide Collection Ecosystem The partnership will focus on creating a **Special Purpose Vehicle (SPV)** designed to develop a comprehensive reverse logistics and collection system for used lubricating oil across the country. This innovative platform will consolidate used oils from both industrial and automotive sectors, leading to the establishment of advanced **Re-Refined Base Oil (RRBO)** refining infrastructure. With the help of Re Sustainability and its technology partners, the initiative will produce high-quality Group I and Group II+ base oils from recovered lubricants.

Mr. Bankim Patra, Country Head (Lubes) at Indian Oil Corporation, emphasized the importance of this collaboration, stating, "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 utilization of lubricants. By formalizing the collection and recycling of used oil, we are supporting a more resource-efficient and sustainable energy ecosystem for India."

Circular Approach to Oil Recycling Under this initiative, the oil that is recovered will undergo processing to yield **Re-Refined Base Oil (RRBO)**, which will be reintegrated into lubricant manufacturing processes. This innovative circular approach is set to drastically reduce reliance on virgin crude-derived base oils while enhancing material efficiency throughout the lubricants sector.

Mr. Masood Mallick, Managing Director & Group CEO of Re Sustainability, remarked on the collaborative effort, saying, “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 institutionalizing 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.”

Targeted Goals and Infrastructure Development The memorandum of understanding outlines ambitious targets, with a goal of collecting **100 KTA (kilotonnes per annum)** of used lubricating oil through a structured nationwide aggregation and logistics network. This initiative not only emphasizes collection but also the importance of traceability systems to monitor the recycling process effectively.

As part of this initiative, partners will work together to construct a cutting-edge re-refining facility at mutually agreed locations. This project will involve both the creation of new infrastructure and the enhancement of existing facilities capable of processing used lubricating oil. The new facility is expected to produce Group I and Group II+ Re-Refined Base Oil (RRBO) that complies with Bureau of Indian Standards (BIS) and international specifications.

The planned facility is anticipated to handle a processing capacity ranging from 50 to 100 KTA and is expected to be operational within the next three years. This will lay the groundwork for a scalable oil recovery and circular recycling ecosystem as a result of this partnership.

Why It Matters This collaboration is a crucial step in addressing the environmental impact of used lubricating oil, which has long been a challenge in India. By formalizing collection and recycling processes, the partnership not only promotes sustainability but also sets a precedent for other industries to follow suit. The initiative stands to make a significant contribution to India's environmental goals while enhancing economic stability through reduced reliance on imported crude oil.

Looking Ahead: The Future of Oil Recycling in India As India continues to embrace the principles of a circular economy, the partnership between Indian Oil and Re Sustainability could serve as a model for similar initiatives across various sectors. The ongoing commitment to sustainability will likely lead to more innovative solutions and partnerships that promote resource efficiency.

In the coming years, stakeholders will closely monitor the establishment of the re-refining facilities and the overall impact of this initiative on India's energy landscape. Watch for updates on how this initiative influences regulatory frameworks, industry standards, and the broader commitment to environmental sustainability across the nation.