Turning India's Used Oil Problem Into an Opportunity
India generates 1.3 million tonnes of used oil annually. Less than 15% is formally recycled. Santosh is building the infrastructure to change that.
01 · EPR MANDATE
A Mandate With a Deadline
India's EPR regulations under the Hazardous Waste Rules 2023 require lubricant manufacturers to blend increasing proportions of Re-Refined Base Oil (RRBO) into their finished products. The mandate escalates from 5% in FY2025 to 50% by FY2031 — creating an immediate, binding market for domestically produced RRBO.
Santosh is positioned to supply the Group II+ segment of this mandated market — the only category that meets both EPR compliance requirements and the performance standards demanded by premium lubricant manufacturers. As volumes scale, Santosh's hydrotreating technology becomes the competitive moat that Group I producers cannot replicate.
EPR RRBO BLENDING MANDATE PROGRESSION
Source: CPCB EPR Portal · Hazardous Waste (Management and Transboundary Movement) Rules 2023
02 · CIRCULAR ECONOMY
The Loop That Closes the Gap
Every litre of RRBO displaces virgin base oil, recaptures used oil from the waste stream, and feeds back into the same engines it came from. The EPR mandate makes this loop economically mandated — not just environmentally responsible.
03 · ENVIRONMENTAL IMPACT
Less Energy. Less Carbon. Less Waste.
Less energy consumed in production vs virgin base oil
Source: TEV Report / DPR — Santosh Petrochemical Innovations
Re-refining used lubricating oil requires significantly less energy than refining crude oil into virgin base stock. By recapturing used oil that would otherwise be burned as fuel, dumped, or improperly disposed of, re-refiners like Santosh eliminate a major source of soil and groundwater contamination across India.
The asphalt flux residue from the re-refining process is reused in road construction — meaning Santosh's plant operates with zero waste to landfill. Every input is either refined into premium RRBO or converted into a useful secondary product.
IOCL and Re Sustainability signed an MOU to build India's first national Group II+ RRBO circular economy — directly validating Santosh's technology and market positioning.