India is drawing up a national policy on sustainable aviation fuel (SAF) and a long-term roadmap through 2050, as the aviation industry faces mounting pressure to cut emissions. The move comes ahead of tighter international rules under the International Civil Aviation Organization’s (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which will become mandatory from 2027.
Officials and industry executives say the effort seeks to balance regulatory compliance with positioning India as both a major user and exporter of SAF. The government has already announced blending targets of 1 per cent by 2027, 2 per cent by 2028 and 5 per cent by 2030 for international flights, a step that aligns with India’s broader net-zero goal for 2070.
Building the Policy Framework
Committees have been set up under the joint leadership of the ministry of petroleum and natural gas (MoPNG) and the ministry of civil aviation (MoCA). MoPNG is tasked with production, certification and feedstock development, while MoCA will oversee blending obligations for airlines, airport readiness and compliance with international standards such as ASTM D7566 and CORSIA. Supporting roles are being played by the ministries of new and renewable energy, environment, finance and industry promotion. Niti Aayog is also part of the deliberations.
Industry representatives said the Indian Sugar & Bio-energy Manufacturers Association (ISMA) and Deloitte are working on blending targets, while ISMA has tied up with The Energy and Resources Institute (TERI) for a Life Cycle Assessment (LCA) of sugarcane-based SAF. The study, which uses syrup, molasses and bagasse as inputs, is expected to be completed within a month. The absence of an LCA value for India in the CORSIA framework makes the study strategically important. Brazil and the United States already have benchmark LCAs for sugarcane and corn, respectively.
“Committees have already been formed, and discussions with stakeholders are underway to develop a comprehensive national SAF policy,” said an executive closely involved in the process.
The Cost Challenge
While the framework is moving forward, questions remain about cost and scalability. SAF currently costs about three times more than conventional jet fuel, while synthetic SAF, also called Power-to-Liquid, can be nearly seven times costlier.“Ethanol-based fuels can play a supporting role, but synthetic SAF is a more advanced pathway that requires strong policy backing and significant investment,” said a committee member.
Industry stakeholders are also pressing for SAF to be formally brought under the bioenergy sector. At present, it is classified under fossil fuels, which restricts access to incentives. Reclassification, they argue, would make aviation fuels eligible for subsidies and schemes such as Gobardhan, which currently covers biogas and small-scale projects but excludes SAF.
Feedstocks and Production Potential
Traditional SAF is produced from waste oils and biomass, while synthetic versions use renewable electricity to synthesise carbon dioxide and water into fuel. India’s policy will include a techno-commercial roadmap that maps blending targets, feedstock supply, infrastructure requirements and investment opportunities through 2050.
Food ministry secretary Sanjeev Chopra said production capacity is not a limiting factor. India has an installed ethanol production capacity of 18.25 billion litres, with another 2.5 billion litres being added. The estimated requirement for achieving 20 per cent ethanol blending in petrol is 17 billion litres. “This ensures that production capacity itself will not be a constraint,” he said.
The main hurdle lies in securing a reliable feedstock supply. “Ensuring a sustainable and consistent feedstock chain is now the government’s primary focus, and efforts are underway to strengthen it,” Chopra added. He also confirmed that standards for SAF are still under development, but expressed confidence that with clear benchmarks, coordinated policy measures and robust capacity, the 2030 blending target can be achieved.
Industry and Market Readiness
India’s ambitions extend beyond meeting domestic blending goals. Officials hope the country can position itself as an export hub for green aviation fuels. A 2024 Deloitte India report estimated that the country could produce 8-10 million tonnes of SAF annually by 2040, requiring investments of Rs 6-7 lakh crore (\$70-85 billion). This scale of production could cut aviation emissions by 20-25 million tonnes per year and cement India’s place in global green fuel markets.By the end of this year, Indian Oil Corporation is expected to begin producing 35,000 tonnes of SAF annually from used cooking oil. The feedstock will be sourced from restaurant chains, hotels and food companies, marking one of the first large-scale commercial efforts in the country.
International Context
Globally, several countries have moved ahead in setting mandates for SAF adoption. The European Union has announced progressively rising SAF blending targets for airlines operating in its jurisdiction. The United States is incentivising production through tax credits under its Inflation Reduction Act. Brazil, with its long-standing experience in ethanol blending, is also expanding into aviation biofuels.
India’s strategy, therefore, is aimed at catching up with global peers while addressing its own priorities of energy security, carbon reduction and agricultural diversification.
Outlook
Despite optimism, challenges remain. The cost of production, technological maturity, global competition for feedstocks and the need for large-scale investments will test India’s ambitions. The classification of SAF, its eligibility for incentives and the pace of regulatory approvals will also play a critical role in shaping outcomes.
Still, the momentum is evident. With inter-ministerial coordination, industry participation and policy backing, India is moving toward a structured plan for green aviation fuels. If successful, the country could not only meet its international obligations but also emerge as a supplier in the growing global market for SAF.
As Chopra summed up, “There is strong optimism that by 2030, India will achieve its 5 per cent blending target, supported by robust capacity, clear standards and coordinated policy measures.”