Indian Oil signs MoU with Re Sustainability for used-oil recycling

Indian Oil Corporation signed a Memorandum of Understanding with Re Sustainability Limited to build a nationwide system for collecting, aggregating and re-refining used oil. The partnership aligns with tightening Extended Producer Responsibility norms under the Central Pollution Control Board, signalling stricter compliance expectations for India's automotive, manufacturing and energy sectors.

Indian Oil Corporation (IOC) signed a Memorandum of Understanding with Re Sustainability Limited to build a nationwide used oil recycling ecosystem covering collection, aggregation and re-refining of used oil, a critical but under-regulated waste stream in India's industrial and automotive sectors. The agreement outlines a phased approach starting with pilot projects across key regions, followed by nationwide scaling. Indian Oil will leverage its fuel retail network for collection points, while Re Sustainability provides technical expertise in waste management, recycling infrastructure and compliance systems, establishing re-refining facilities that convert used oil into base oils and other petroleum products.

The initiative directly affects businesses in the automotive, manufacturing and energy sectors that generate or handle used oil and must align with emerging Extended Producer Responsibility (EPR) norms for used-oil management. Regulatory bodies such as the Central Pollution Control Board (CPCB) have tightened compliance requirements, pushing industries toward responsible disposal and recycling. The partnership positions Indian Oil as a proactive player meeting these expectations while enabling downstream stakeholders to participate in compliant systems. Improper disposal of used oil poses severe soil and water contamination risks across these sectors.

Businesses in automotive, manufacturing and energy should align with emerging EPR regulations for used oil, making partnerships and formalised collection channels essential for compliance readiness. The collaboration supports Scope 3 emission-reduction strategies by promoting reuse and recycling within the oil value chain and enhances traceability and transparency in waste handling, both critical for ESG reporting and investor scrutiny. Affected entities should monitor CPCB compliance requirements, participate in the phased rollout beginning with regional pilots, and assess opportunities in re-refined oil products while reducing environmental liabilities.

Key figure — Rollout structure: phased approach beginning with regional pilot projects before nationwide scaling