New Delhi, Nov. 5 -- Sustainable aviation fuel (SAF) could cost at least two to three times as much as conventional jet fuel, according to a draft policy by the Centre, which proposes financial incentives to encourage its production as India prepares to introduce blending mandates for airlines.

Sustainable aviation fuel (SAF) is an alternative fuel made from non-petroleum feedstocks that reduces air pollution from air transportation, according to the US Department of Energy.

The draft proposes a phased blending mandate for international aviation, requiring fuel suppliers to ensure a 1% SAF blend in 2027, 2% in 2028, 3% in 2029 and 5% in 2030. Targets beyond 2030, including 20% by 2040, are mentioned as 'indicative'. The National Council...