{"id":56510,"date":"2023-05-10T15:36:51","date_gmt":"2023-05-10T10:06:51","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=56510"},"modified":"2024-05-03T11:36:49","modified_gmt":"2024-05-03T06:06:49","slug":"waste-oil-recycling-business-in-india-and-business-opportunities-in-the-sector","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/waste-oil-recycling-business-in-india-and-business-opportunities-in-the-sector\/","title":{"rendered":"Waste Oil Recycling Business in India and Business Opportunities in the Sector"},"content":{"rendered":"\n<p>The term oil includes engine oils, industrial oils, transmission oils, hydraulic and cutting oils etc., that are used as a lubricant medium to reduce friction and wear between bearing metallic surfaces. These oils have a running period, after which they have to be periodically replaced. Used lubricating oils are considered hazardous as it has the potential to cause pollution and affect the environment. Used crankcase oil can contain hazardous contaminants that accumulate during use as an engine lubricant. Sources of contamination include additive breakdown products like barium and zinc engine and material that leak from the engine combustion chamber into the crankcase oil, burnt oil, and metal particles from engine wear, such as arsenic, lead, nickel and cadmium. Numerous other metals are present in used oils, such as aluminium, copper, iron, magnesium, silicon and tin; however, they are generally not given much attention due to their low concentrations and low toxicities.<\/p>\n\n\n\n<p>However, used oil is a form of hazardous waste that can be recycled economically. Re-refining used oil takes only about one-third of the energy of converting crude oil to lubricant. It takes 149 liters of crude oil to produce 3.8 litres of lubricant oil but only approximately 1.2 lt of of used oil to produce 1 litre of new, high-quality lubricating oil. Massive demand for Waste Oil Recycling Business is anticipated in India because of the growth seen in the three major bulk consumers of lubricating oil, i.e. the automobile sector, the manufacturing sector and the railways. Recycled oil is just as good for vehicles as virgin oil, which has undeniable environmental and economic benefits. This article will analyse Waste Oil Management in India and the recycling business opportunities created after the amendment to the Hazardous Waste Management Rules, 2023.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/waste-oil-recycling-business-in-india-and-business-opportunities-in-the-sector\/#Overview_of_Waste_Oil_Management_under_EPR_Regime\" >Overview of Waste Oil Management under EPR Regime<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/waste-oil-recycling-business-in-india-and-business-opportunities-in-the-sector\/#Registration_Process_for_Waste_Oil_Recycling_Business\" >Registration\nProcess for Waste Oil Recycling Business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/waste-oil-recycling-business-in-india-and-business-opportunities-in-the-sector\/#Responsibility_of_Waste_Oil_Recycling_Business\" >Responsibility\nof Waste Oil Recycling Business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/waste-oil-recycling-business-in-india-and-business-opportunities-in-the-sector\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overview_of_Waste_Oil_Management_under_EPR_Regime\"><\/span>Overview of Waste Oil Management under EPR Regime<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Environment protection agencies\nacross the globe have formulated strict regulations to control the disposal of\nused oil. Extended Producer\nResponsibility is a waste management regime based on the producer&#8217;s pay\nprinciple that ensures that producers are responsible for the whole life cycle\nof their products, including their disposal. The significance of EPR in India\nhas never been more vital. EPR has many advantages, including lowering waste,\nraising recycling rates, and establishing a circular economy that can immensely\nbenefit a waste oil recycling business. As 49.55 per cent of the hazardous\nwastes generated are &#8220;recyclable&#8221; according to the government\nreports, most of these hazardous wastes, such as (used oils and lubricants) have\nqualities that make them suitable as resource materials for recovering base\ncomponents (base oil), energy, materials like metals, or for use in secondary\nprojects, the production of low-grade goods, or the recovery of the product\nitself, which can be used as a resource material after processing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Applicability of EPR on Waste Oil Recycling Business<\/h3>\n\n\n\n<p><strong>MoEF<\/strong><sup><a href=\"https:\/\/moef.gov.in\/en\/\"><strong>[1]<\/strong><\/a><\/sup>, in May 2023, brought an amendment in the Hazardous and Other Wastes Rules (HOWM Rules) 2016<strong>. <\/strong>This amendment has made the <strong><a href=\"https:\/\/corpbiz.io\/epr-registration\">EPR registration<\/a><\/strong> of the producers, used oil importers, and recycling business owners mandatory from 1<sup>st<\/sup> April 2024. The EPR regime that has been introduced in the Amendment Rules, 2023, has been described under Schedule X Rule 2 of the HOWM Draft Notification, 2023. The changes in the waste oil management will lead to a demand for Waste Oil Recycling Business and collection services in the country.<\/p>\n\n\n\n<p>To identify the opportunities in Waste\nOil Recycling Business, we must first understand the changes brought by the\n2023 notification. So the amendment has defined the following terms related to\nthe oil refining industry.<\/p>\n\n\n\n<figure class=\"wp-block-table table table-bordered\"><table><tbody><tr><td>\n  Re-refining\n  <\/td><td>   A process that purges unwanted impurities from used-up\/ waste oil to produce base oil or lubricating oil.   <\/td><\/tr><tr><td>\n  Collection point and Collection\n  agent \n  <\/td><td>   Facilities where the collection   agent will be permitted to collect the waste oil from consumers\/ bulk   consumers   <\/td><\/tr><tr><td>\n  \u2018Environmentally sound\n  management of Used oil\n  <\/td><td>\n  The approach to ensure that\n  waste oil is handled in a way to protect human health and the environment\n  from adverse effects that may result during gathering, transportation, and recycling.\n  <\/td><\/tr><tr><td>\n  Extended Producer\n  Responsibility\n  <\/td><td>   Duty of any oil or lubrication   oil manufacturer or waste importer to satisfy recycling targets solely   through licenced recyclers to ensure environmentally sound management of old   oil in accordance with the rules of subparagraph (2 of the amended rule.   <\/td><\/tr><tr><td>\n  Recycling\n  <\/td><td>   Any environmentally sound   method of re-refining old oil to create base oil or lubricating oil that has   the facilities detailed in the standard operating procedure (SOP) or   standards established by the Central Pollution Control Board   <\/td><\/tr><tr><td>\n  Base Oil \n  &nbsp;\n  <\/td><td>\n  The oil that is used for the\n  manufacture of finished lubrication oil.\n  <\/td><\/tr><tr><td>\n  Used Oil\n  <\/td><td>   Any oil as defined under   sub-rule (36) of Rule 3 of Hazardous and Other Wastes (Management and   Transboundary Movement) Rules, 2016   <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Opportunities in the Waste Oil Recycling Business<\/h3>\n\n\n\n<p>The waste oil is collected from\nengines\/ machines\/ boilers etc. by Waste Oil Recycling Business refined through\nautomated machines and after quality testing, sold back to manufacturers as\nbase oil, an essential component in manufacturing of final product. The limited\navailability of crude oil feedstock to manufacture of virgin oil is driving the\nneed for the use of recycled base oil. The following are the two businesses\nthat can be set up in the waste oil recycling segment.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Waste oil Reconditioning (on-site)<\/h4>\n\n\n\n<p>This process is used to remove\nimpurities from the used oil by uses a filtering system at the site where oil\nis being used, to prolong the life of the oil. This method is helpful in case\nof large operations or factories that generate a lot of waste oil.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Re-Refining Of Used Oil into Base Stock to Manufacture New Lubricating Oil<\/h4>\n\n\n\n<p>The used oil is the feedstock for\na Waste Oil Recycling Business. Here used oil is filtered, hydro-treated and\ndistilled to remove different contaminants. The resulting product is identical\nto virgin base oil . There are filtration techniques that can filter used oil\nto meet the applicable standards, such as the American Petroleum Institute\n(API) standards used in India. Refining gives eco-friendly base oil, generating\nlower carbon emissions than virgin base oil. The rise in the focus on the\nsustainability of the environment globally is providing a significant\nopportunity for the global recycled base oil market. Re-refining of used oil\nprolongs the life of the oil , making refining the the safest approach to\nrecycle oil . <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Registration_Process_for_Waste_Oil_Recycling_Business\"><\/span>Registration\nProcess for Waste Oil Recycling Business<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Producers\/ waste oil importers\/\nrecyclers, and collection agents will have to register for EPR for Waste oil\nthrough an online system developed by the Central Pollution Control Board. The\nregistered entities will be issued EPR registration numbers and will have to\nreport production\/ import and recycling data quarterly and yearly returns as\nper their responsibilities, and the tracking system will ensure a material\nbalance of the lubrication oil introduced to the market by producers during a\nfiscal year will be maintained by this system.<\/p>\n\n\n\n<p>The following businesses will\nhave to register on the EPR portal.<\/p>\n\n\n\n<ol>\n<li>Producers<\/li>\n\n\n\n<li>Used Oil importers<\/li>\n\n\n\n<li>Recyclers\n<\/li>\n\n\n\n<li>Collection\nagents <\/li>\n<\/ol>\n\n\n\n<p>Any\nentity that fits into more than one of the categories above must register under\neach one separately. The rules also defined that authority of the Central\nPollution Control Board to cancel an entity&#8217;s registration in case of knowingly\nwithholding information, false reporting of oil production recycling or import,\nor any other information required under the new schedule, for a period of up to\nfive years. In addition, to it, the Board may levy environmental compensation in\ncase the entity falls short of meeting its EPR targets, as defined in the\nrules.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Responsibility_of_Waste_Oil_Recycling_Business\"><\/span>Responsibility\nof Waste Oil Recycling Business<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If one\nwishes to start a used oil recycling business, one will have to adhere to the\nfollowing guidelines.<\/p>\n\n\n\n<ul>\n<li>Getting themselves registered on the centralised EPR Portal<\/li>\n\n\n\n<li>Submitting yearly returns in the format specified on the portal by the deadline of June 30 after the fiscal year to which the return relates.<\/li>\n\n\n\n<li>Submitting quarterly returns in the format specified on the portal by the end of the following month, the time period the returns are for.<\/li>\n\n\n\n<li>Verify that SOP of the waste oil recycling business and recycling procedures adhere to the SOP or other rules issued by the Central Pollution Control Board.<\/li>\n\n\n\n<li>Ensure the environment is not harmed while old oil is stored, transported, and recycled.<\/li>\n\n\n\n<li>Ensure that the waste generated during recycling is disposed of in line with the Hazardous and Other Wastes Rules 2016.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Recycling oil is proving out to be a boon to the environment and has great economic benefits. Therefore, there is much room for growth for used\/ Waste Oil Recycling Business in the country. The increasing number of automobiles across the globe is driving the demand for lubricants. Production of base oil from fresh crude oil is an energy-intensive process. Petrochemical sources are depleting, and increasing crude oil prices are encouraging oil manufacturers to find new methods to re-refine and utilise waste oil. This makes recycling used oil a reasonably viable process for base oil manufacturing. However, for Waste Oil Recycling Business to fully benefit from various government incentives, they must register for EPR and fulfil other legal obligations such as necessary licences and approvals. Seeking the assistance of industry experts when setting up an oil recycling business will assist the entrepreneur in fulfilling the legalities and meeting post-compliance in time.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read Our Article<\/b>: <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/growth-opportunities-in-recycling-and-waste-management-business\/\">Growth Opportunities In Recycling And Waste Management Business<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The term oil includes engine oils, industrial oils, transmission oils, hydraulic and cutting oils etc., that are used as a lubricant medium to reduce friction and wear between bearing metallic surfaces. These oils have a running period, after which they have to be periodically replaced. Used lubricating oils are considered hazardous as it has the [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":56578,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2042],"tags":[3600],"acf":{"service_id":"498"},"authorName":"Muskaan Verma","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/05\/MicrosoftTeams-image-14.jpg","authorDescription":"Muskaan has completed her BA.LLB and LLM, gaining vast legal knowledge and expertise. She has keen interest in legal research and content writing, having prior experience of publishing numerous research papers in international journals on Environmental Laws and Corporate Laws.","postViews":8762,"readingTime":6,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/56510"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=56510"}],"version-history":[{"count":3,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/56510\/revisions"}],"predecessor-version":[{"id":63950,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/56510\/revisions\/63950"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/56578"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=56510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=56510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=56510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}