International Journal For Multidisciplinary Research

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Economic Impacts of Extended Producer Responsibility (EPR) on India’s Lubricating Oil and Grease Industry: Costs, Benefits and Pathways to Circularity

Author(s) Mr. Anjeeve P George
Country India
Abstract The introduction of Extended Producer Responsibility (EPR) under the Hazardous and Other Wastes (Management and Transboundary Movement) Second Amendment Rules, 2023 (effective 1 April 2024) has fundamentally altered the economics of India’s lubricating oil sector. Producers and importers of base and lubricating oils must now meet phased recycling targets rising from 5% in FY 2024–25 to 50% by FY 2030–31, fulfilled through the purchase of EPR certificates from registered recyclers. This paper analyses short-term compliance costs (estimated INR 1–6 per litre price impact on lubricants at higher targets), infrastructure investments, and long-term benefits including foreign-exchange savings (potential >₹5,000 crore¹ annually at scale), energy savings (re-refining uses one-third the energy of virgin base-oil production), GHG reductions (~1.5 MMT CO₂e by FY 2030–31), and formal job creation in collection and re-refining. The re-refining industry is projected to require 600–700 KT additional capacity by FY 2030–31, driving market growth for re-refined base oil (RRBO). Grease is largely exempt from EPR targets (as it does not generate reclaimable used oil), resulting in negligible direct economic impact beyond general hazardous-waste obligations. Drawing primarily on the FICCI-RECEIC-Deloitte (2025) report and official CPCB data, the analysis concludes that while initial compliance burdens exist, EPR is catalysing a net-positive economic transformation toward resource efficiency and self-reliance, provided collection formalisation and RRBO incentives are strengthened.
Field Sociology > Economics
Published In Volume 8, Issue 3, May-June 2026
Published On 2026-05-29
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