Business Wire India - Multimedia: Digest for September 22, 2023

Business Wire India - Multimedia Multimedia By Business Wire India

Table of Contents AVISTA OIL and IFP Petro: Progress, Future Plans, and Call for Government Support

AVISTA OIL and IFP Petro: Progress, Future Plans, and Call for Government Support Saturday 29 June 2024 04:30 AM UTC+00 Business Wire India AVISTA OIL, a global leader in used oil collection and re-refining, and IFP Petro, a leading Indian company in the used oil re-refining sector, have joined forces to drive sustainable practices and contribute to India's sustainability path. This partnership has yielded significant achievements, including the development of a comprehensive business model for a state-of-the-art used oil refinery with a capacity of 100,000 TPA.   Achievements Over the Past Year Through collaborative efforts, AVISTA OIL and IFP Petro have made substantial progress in various areas:   Know-how Exchange: The partners have actively shared expertise in used oil mechanisms and best practices, enabling the integration of global knowledge into local operations. Regulatory Assistance: Jointly, they have worked towards shaping the regulatory landscape to ensure a smooth translation of regulations into market practices, facilitating industry growth. Dialogues have been held with Government Bodies as well as International Development Agencies. Operational Feasibility: Together, they have evaluated the viability of product and service exchange, exploring avenues for diversification and leveraging each other's strengths. EPR Regime Development: They have been promoting the Extended Producer Responsibility (EPR) regime within their networks, which they recognize as a crucial step for the industry, emphasizing the importance of responsible management of used oil. Challenges Encountered and The Need for Viability Gap Funding To ensure the economic feasibility of the ambitious used oil refinery project, AVISTA OIL and IFP Petro have been able to identify that there is a requirement of a Viability Gap Funding (VGF). Keeping in view the current market conditions, eg. The high raw material prices coupled with low base oil prices, the current collection ecosystem, and the uncertainty of market awareness and acceptance, are only a few of the challenges encountered. The EPR regime is one step in the right direction. Its introduction has created a momentum that must be sustained and expanded. However, informal market practices, especially in the existing collection infrastructure, fragmented and irregulated collection participants, lack of knowledge and awareness among the stakeholders, uncertainty about compliance and regulatory implementation are among the key factors that increase the risk profile for a high scale Re-refining Investment. In line with India's environmental objectives and as seen in other countries in the past, financial assistance in the sense of a dedicated scheme for re-refining could close the gap and allow the development of a long-term business plan for the management of used oil in India.   Call for Active Support from Stakeholders The success of this partnership relies on the active involvement of all stakeholders. They urge oil producers, Original Equipment Manufacturers (OEMs), and used oil generators to actively participate in building a comprehensive ecosystem that supports the collection, refining, and reuse of used oil. So that together they can create a cleaner and more sustainable future for the Indian oil industry.   Looking Ahead AVISTA OIL and IFP Petro are committed to strengthening the partnership and expanding the efforts in the coming years. They envision continued collaboration and support to drive positive change within the Indian oil sector and remain optimistic about the future and the potential for a profitable re-refining business.

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