New Delhi: In a major step towards sustainability and circular economy practices, Hindustan Petroleum Corporation Limited (HPCL) and Castrol India Limited have signed a Memorandum of Understanding (MoU) to explore the development of a Re-Refined Base Oil (RRBO) ecosystem in India.
The collaboration aims to create a structured model for the collection and re-refining of used lubricating oil, helping convert waste into high-quality base oil for fresh lubricant production.
Vision for a Circular Lubricant Economy
The proposed model focuses on building a closed-loop system, where used lubricating oil—one of India’s major industrial waste streams—is systematically collected, re-processed, and reused. This approach aligns with global circular economy principles and supports India’s sustainability goals by reducing waste and conserving natural resources.
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Key Objectives of the MoU
Under the agreement, HPCL and Castrol India will jointly assess:
- Commercial, operational, and technical feasibility of establishing a large-scale RRBO ecosystem
- Existing and potential collection channels for used lubricating oil
- Re-refining capacity and performance testing of RRBO across different lubricant formulations to ensure quality standards
The study will help determine how re-refined base oil can be integrated into mainstream lubricant production in India.
Leadership Views on the Partnership
Ch Srinivas, Executive Director – Lubes, HPCL, said that as energy markets evolve, circularity in value chains will become increasingly important. He added that the partnership will help assess a structured system for collecting and re-refining used oil, enabling material recovery and responsible resource use.
Saugata Basuray, Interim CEO, Castrol India, described used oil as a valuable resource when processed correctly. He said the MoU provides an opportunity to explore a model that can reduce environmental impact, cut waste, and support India’s growing focus on circularity.
Strong Environmental and Economic Potential
India generates large volumes of used lubricating oil every year, much of which is either under-collected or disposed of informally. Globally, re-refining technology can recover 70–80% of used oil as high-quality base oil, while consuming significantly less energy than producing virgin base oil from crude.
When processed to required specifications, re-refined base oil performs on par with conventional base oils, making it both an environmentally and commercially viable solution.
Next Steps
The companies will begin detailed assessments immediately, including mapping collection systems, evaluating re-refining capabilities, and testing RRBO performance. The findings will guide the potential implementation of a pioneering circular lubricant model in India.
About Hindustan Petroleum Corporation Limited (HPCL)
HPCL is a Maharatna Central Public Sector Enterprise in the oil and gas sector. Established in 1974, the company operates major refineries in Mumbai and Visakhapatnam, processes over 25 million tonnes of crude annually, and runs a nationwide network of more than 24,000 fuel retail outlets.
About Castrol India Limited
Castrol India, part of the bp group, has been present in India for over 115 years. The company operates three blending plants and has a strong distribution network reaching more than 150,000 retail outlets, making it one of the leading lubricant brands in the country.
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