Rules 25 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Chapter VII of the Hazardous and Other Wastes Rules makes producers and importers of lubricating and base oil responsible for seeing that used oil is recycled. Rules 25 to 30 cover the definitions, registration with the CPCB on its portal, the recycling targets by year, how recyclers earn certificates, how producers buy them and the portal that records everything. The Chapter applies from 1 April 2024.
These Rules are current as amended up to G.S.R. 636(E) dated 16 July 2026 (Chapter VIII on non-ferrous metal scrap in force from 1 April 2026). Later amendments, CPCB guidelines, notifications and portal instructions should be checked. If you are a producer, importer or recycler of oil, see our compliance documentation service.
Producers of base oil or lubrication oil and used oil importers must register with the CPCB on its portal and may not carry on business without registration (rule 26). Producers meet a recycling target that rises from five per cent of oil sold or imported two years earlier (2024-2025) to fifty per cent from 2030-2031 (rule 27). They fulfil it by buying EPR certificates from registered recyclers only (rule 27(4)). Importer obligation is hundred per cent of the used oil imported in the previous year.
Rule 25: the definitions that matter
| Term | Meaning |
|---|---|
| "producer" | A person or entity, whatever the selling technique (dealer, retailer, e-retailer), who manufactures and offers to sell base oil or lubrication oil domestically under its own brand; or offers to sell lubrication oil under its own brand using base oil made by others; or offers to sell imported base oil or lubrication oil domestically |
| "bulk generator" | An entity such as an automobile industry, railways, a defence establishment, a transport company, an industrial unit, a power transmission company, a hotel or restaurant, generating more than 100 metric tonnes of used oil per annum |
| "collection agent" | A person or entity who collects used oil and supplies it to the recycler |
| "recycler" | A person or entity engaged in recycling of used oil |
| "recycling" | Re-refining of used oil to produce base oil or lubrication oil, or energy recovery from used oil, in an environmentally sound manner with facilities as in the CPCB's SOPs or guidelines |
| "extended producer responsibility" | The responsibility of the producer of base oil or lubrication oil or the importer of used oil for meeting recycling targets only through registered recyclers |
| "portal" | The online system developed by the CPCB for compliance with the Chapter |
| "used oil" | As in clause 36 of rule 3 (see rules 1 to 3) |
Rule 26: registration
- 26(1): producers, collection agents, recyclers and used oil importers shall get themselves registered by the CPCB on the portal.
- 26(2): an entity in more than one category registers separately under each.
- 26(3): no such entity shall carry out business without registration.
- 26(4): registered entities shall not deal with any entity that is not registered.
- 26(5): if a registered entity furnishes false information or wilfully conceals information for registration, return, report or information, or in case of irregularity, the CPCB may revoke the registration for up to five years after an opportunity to be heard, and in addition may levy environmental compensation charges as per rule 39.
- 26(6): the CPCB may charge registration fees and annual maintenance charges based on the volume of used oil generated, recycled or handled. No amounts are printed in the Rules.
Rule 27: modalities and targets
27(1): EPR covers two modes of managing used oil "in order of priority": (i) producing re-refined base oil or lubrication oil; and (ii) energy recovery.
27(2): all producers and used oil importers fulfil the obligation in the Table and may take help of third-party organisations such as integrated used oil management systems, collection centres or dealers. The proviso says the EPR "shall lie entirely on the producer only".
Part A, producers:
| Year of obligation | Target |
|---|---|
| 2024-2025 | 5 per cent of base oil or lubrication oil sold or imported in 2022-2023 |
| 2025-2026 | 10 per cent of that sold or imported in 2023-2024 |
| 2026-2027 | 20 per cent of that sold or imported in 2024-2025 |
| 2027-2028 | 20 per cent of that sold or imported in 2025-2026 |
| 2028-2029 | 40 per cent of that sold or imported in 2026-2027 |
| 2029-2030 | 40 per cent of that sold or imported in 2027-2028 |
| 2030-2031 (Y) onwards | 50 per cent of that sold or imported in the year (Y-2) |
For units established after 1 April 2024, the obligation starts two years after the end of the financial year in which the unit was established, and follows the target above.
Part B, used oil importers: the obligation in year (Y) is hundred per cent of the used oil imported in year (Y-1), and import of used oil is permitted for re-refining only.
27(3): the producers' target is reduced by a factor laid down by the CPCB on account of operational loss of base oil.
27(4): producers may fulfil EPR through online purchase of certificates from registered recyclers only; details by producers and recyclers are cross-checked on the portal; in case of a difference, the lower figure counts towards the producer's obligation; and certificates are subject to audit by the CPCB or agencies it authorises.
Rule 28: how certificates are generated
The CPCB generates EPR certificates on the portal in favour of a registered recycler. The Table gives the weightage (WP): 1.0 for producing re-refined base oil or lubrication oil, and 0.25 for co-processing, utilisation or energy recovery of used oil not suitable for recycling, up to a maximum percentage to be prescribed by the CPCB. The quantity eligible is:
QEPR = QP × CF × WP, where QP is the quantity of end product, CF the conversion factor (quantity of inputs required for production of one unit of output) and WP the weightage.
The Rules give their own example: a recycler producing 100 tonnes of re-refined oil with conversion factor 1.5 gets 100 × 1.5 × 1 = 150.0 tonnes of eligible certificates. A certificate is valid for two years from the end of the financial year of generation, after which it extinguishes automatically. Each has a unique number and comes in denominations of 100, 200, 500, 1000 and 10,000 kilograms, or as the CPCB lays down with the Steering Committee's approval.
Rule 29: buying and trading certificates
| Sub-rule | Provision |
|---|---|
| 29(1) | A producer may purchase certificates limited to its liability for the current year plus leftover liability of preceding years plus 10 per cent of the current year's liability |
| 29(2) | The obligation is fulfilled by purchasing certificates proportionately on a quarterly basis |
| 29(3) | On purchase, the certificate is automatically adjusted against liability, earlier liability first, and is extinguished and cancelled |
| 29(4) and (5) | Availability, requirements and transactions are on the portal and recorded by producers, importers and recyclers |
| 29(6) and (7) | One or more trading platforms may be established through an agency accredited by the CPCB, operated per guidelines of the Central Government |
| 29(8) | The CPCB fixes the highest and lowest price for exchange of certificates, equal to hundred per cent and thirty per cent of the environmental compensation under rule 39 |
| 29(9) | The exchange price on the portal is between those prices |
Sub-rules (7) to (9) came in with the 2024 amendment (G.S.R. 177(E)). The environmental compensation is explained in rules 39 to 43; this article gives no price.
Rule 30: the portal
The CPCB establishes an online system for registration, quarterly and annual returns, EPR certificates and tracing of oil, reflecting the material balance of lubrication oil put in the market by any producer in a financial year (30(1)). The portal is the single point data repository (30(2)) and all EPR activities are to be done online (30(3)). The manifest system applies to entities that need authorisation under the Rules (30(4)). Under 30(5), added in 2024, the Central Government may, in public interest or for effective implementation, by order relax a return or report period for a producer, collection agent, recycler or importer by up to nine months.
Example
Western Lubricants Private Limited sold 10,000 tonnes of lubrication oil in 2022-2023. Its obligation for 2024-2025 is five per cent of that quantity, that is 500 tonnes, before any reduction the CPCB allows for operational loss. It buys certificates from a registered recycler on the portal in equal quarterly lots, checks that the recycler's entries match its own and keeps the records ready for audit.
Need help with used oil EPR?
EPR depends on correct registration and reconciled portal data. Our compliance documentation team can help you register, compute targets and prepare for audit.
Key takeaways
- Producers, collection agents, recyclers and importers must register; no registered entity may deal with an unregistered one.
- Producer targets step from five per cent (2024-2025) to fifty per cent from 2030-2031, on sales of an earlier year.
- Certificates come only from registered recyclers and are valid for two years from the end of the financial year of generation.
- The CPCB fixes the exchange price band between hundred per cent and thirty per cent of the compensation under rule 39.
- The CPCB portal is the single data repository, and returns can be relaxed by up to nine months by order.
Read next
- Rules 31-38: duties of used oil producers, importers, collectors, recyclers and authorities
- Rules 39-43: used oil environmental compensation, penalty, audit and Steering Committee
- Section 6 of the EP Act: rules to regulate environmental pollution
- Schedule IX: EPR for waste tyres
Disclaimer: Based on the environment rules, guidelines and notifications named above as published in the Gazette of India, read with every amendment notified up to 3 October 2026 that the article names (consolidated reading texts from the CPCB 2021 compilation and the Goa State Pollution Control Board 2025 compilation were checked against the amending notifications), as consulted on 3 October 2026. Later amendments, CPCB guidelines, State Board orders and fees should be checked. This article is general information, not legal advice; check the official text before acting.