ReSL, Indian Oil Sign MoU for India’s first Used Oil Recycling Initiative

Hyderabad, Mar 13 (TNT): Re Sustainability Limited (ReSL) on Friday said it has signed a Memorandum of Understanding (MoU) with Indian Oil Corporation Limited to launch a national initiative for the collection and recycling of used lubricating oil, aimed at building a circular ecosystem for lubricant management in India.

Under the partnership, the companies will establish a Special Purpose Vehicle (SPV) to develop a nationwide reverse logistics and collection network for used lubricating oil from industrial and automotive sectors, the Hyderabad based company said in a release here.

The recovered oil will be processed to produce Re-Refined Base Oil (RRBO), which can be reused in lubricant manufacturing value chains.

The initiative targets an annual collection of up to 100 kilotonnes (KTA) of used lubricating oil through a structured network of aggregation, logistics and traceability systems.

As part of the project, the partners will set up a re-refining facility with a processing capacity of 50–100 KTA, expected to be commissioned within the next three years.

The facility will produce Group II Re-Refined Base Oil meeting Bureau of Indian Standards (BIS) and international specifications.

The collaboration also includes the recovery and recycling of plastic lubricant containers in line with Extended Producer Responsibility (EPR) requirements under India’s environmental regulations.

Commenting on the partnership, Bankim Patra, Country Head (Lubes), Indian Oil, said the initiative will support responsible recovery and reuse of lubricants while strengthening a sustainable energy ecosystem.

Masood Mallick, Managing Director and Group CEO of Re Sustainability, said the partnership aims to build a structured oil recycling ecosystem and support India’s transition toward a circular and resource-efficient economy.

India generates around 1.3 million tonnes of used lubricating oil annually, of which only about 0.2 million tonnes is currently recovered through formal recycling channels, according to the companies.

TNT KS