Base oil is the main raw material used to make several types of lubricating oils, such as gear oil, hydraulic oil, and engine oil. It is a petroleum product obtained by fractional distillation of crude oil. When these lubricants are used for extended periods of time, they are polluted with dirt, discoloured additives, unburned gasoline, combustion by-products, and worn metal particles from engine cylinders. In specialist recycling facilities, this spent oil referred to as waste oil goes through a process of repurification. All contaminants are carefully eliminated during re-refining, which yields the extraction of new base oil. The lubricant production process can be made more resource-efficient and sustainable by reintroducing this refined base oil into the cycle of production once the required additives have been added.
MoEFCC has introduced EPR for Used Oil last year which will be applicable from next financial year. This will make it an imperative for producers to recycle their used oil to complete the EPR targets hence establishing a Used Oil Recycling Plant is a financially viable business to incorporate in 2024.