New Delhi, Nov. 4 -- The central government is preparing to make sustainable aviation fuel (SAF) blending mandatory for airlines from 2027, beginning with a 1 per cent requirement and gradually raising the target to 40 per cent by 2040, under a proposed national policy that also seeks to secure domestic supplies and curb fuel-related cost advantages.
The civil aviation ministry has circulated the draft National Policy on Sustainable Aviation Fuels, which stipulates that only domestically manufactured SAF can be blended with conventional Aviation Turbine Fuel (ATF). At least 90 per cent of the annual SAF requirement for international flights must be sourced from India.
The proposed rollout will take place in two phases. Between 2027 and 2030, the mandatory blending share will increase from 1 per cent to 5 per cent. The second phase, covering 2031 to 2040, will progressively raise the requirement to 40 per cent.
The policy also proposes measures to encourage domestic production, including GST exemptions or reductions, import duty waivers, income-tax holidays and accelerated depreciation. Viability gap funding, green financing and assistance for modifying existing refineries are among the other options under consideration.
To support technological development, the government plans to establish a dedicated SAF Innovation Seed Fund. It will finance pilot projects, indigenous technology development, improvements in feedstock use, lifecycle assessment studies and incubation support for startups and technology developers exploring advanced production methods.
The ministry has also proposed measures to prevent economic tankering, under which airlines carry additional fuel from airports where prices are lower. Indian and foreign carriers operating international services would be required to uplift at least 90 per cent of their annual sector fuel requirements from international airports in India.
The calculation will cover fuel needed for the journey and taxiing, excluding contingency fuel, alternate reserves and additional quantities approved by the Directorate General of Civil Aviation (DGCA).
India currently consumes around 8.2 million tonnes of ATF annually, a figure projected to reach nearly 14.2 million tonnes by 2030. The draft estimates that the country could produce approximately 10 million tonnes of SAF annually by 2040, requiring investments of USD 70-85 billion.
Potential feedstocks include agricultural residues, used cooking oil, municipal solid waste, industrial waste and renewable fuels of non-biological origin.
The proposed framework also envisages a National Council on Sustainable Aviation Fuel to coordinate implementation and a DGCA-backed digital SAF Registry to record, monitor and verify transactions, ensuring transparency and compatibility with domestic and international carbon markets.
SAF is a drop-in alternative compatible with conventional aviation turbine fuel.
Published by HT Digital Content Services with permission from Millennium Post.