The Indian government has introduced the Lubricating Oils and Greases (Processing, Supply and Distribution Regulation) Amendment Order, 2024, aimed at enhancing the regulation of lubricating oils and greases across the country.
This order was published on March 12, 2024. It introduces a new clause, 9A, into the existing Lubricating Oils and Greases Regulation Order of 1987. Clause 9A pertains to the application process for inclusion under PART B of Schedule I of the regulation. Schedule I includes oil companies that are exempted form the definition of processor.
According to the new clause, any company not specified under PART A of Schedule I and engaged in the business of processing lubricating oils and greases may apply for inclusion under PART B of the schedule.
To qualify, the company must meet several criteria, including a minimum of ten years of continuous experience in manufacturing and sales of lubricating oil or grease under the same company name with its own brand name in India. Additionally, the company must demonstrate an average sales volume of 50,000 Kilo Litres per year in the last three financial years, with a minimum average sales volume of 10,000 Kilo Litres per year each in the automotive and industrial segments.
The company should also have a National Accreditation Board for Testing and Calibration Laboratories (NABL) accredited laboratory for testing/certification of lubricating oils and greases and must be an approved vendor for at least two Original Equipment Manufacturers (OEMs) in India with an average sales volume of 2000 Kilo Litres per year in the last three financial years to the OEMs.
Upon receipt of an application, the Central Government will conduct necessary enquiries and may approve or refuse the inclusion of the company’s name under PART B of Schedule I accordingly.
This amendment aims to streamline and strengthen the regulation of lubricating oils and greases, ensuring compliance with quality standards and promoting transparency and accountability in the industry.
