India
India Drafts SAF Policy, Anticipates Higher Costs and Blending Mandates
India’s draft policy on sustainable aviation fuel (SAF) states that SAF could cost at least two to three times as much as conventional jet fuel. The policy proposes a phased blending mandate for international aviation: 1% SAF in 2027, 2% in 2028, 3% in 2029 and 5% in 2030, with 20% by 2040 listed as an indicative target. The National Council on SAF will decide which targets become mandatory, considering supply‑chain readiness, technology and market conditions.
The draft notes that SAF can reduce lifecycle carbon dioxide emissions by up to 80% compared with conventional jet fuel. The mandate will initially apply to international flights covered under the International Civil Aviation Organization’s (ICAO) CORSIA framework, requiring fuel suppliers to blend SAF with aviation turbine fuel (ATF). Only domestically manufactured SAF will qualify.
Financial incentives are proposed to promote SAF production, including potential support through existing or new schemes, green bonds and tax concessions. Fiscal measures could involve exemption or reduction in goods and services tax (GST), import duty waivers, income‑tax holidays and accelerated depreciation, subject to consideration by relevant ministries and departments.
India has an estimated 230 million tonnes of surplus agricultural residue that could be used to produce SAF, along with feedstocks such as used cooking oil and ethanol. To support research and development, the policy proposes an SAF Innovation Seed Fund of about ₹500 crore under the Centre for High Technology, which operates under the petroleum ministry.
The draft also aims to build a domestic supply chain, stating that SAF used to meet blending requirements must be manufactured in India. The fuel would be blended with conventional ATF at a production facility, refinery or intermediate storage point before being supplied to airports. A digital National SAF Registry, to be maintained by the Directorate General of Civil Aviation (DGCA), is proposed to track SAF production, blending and transactions, with each transaction supported by a digitally secured certificate detailing the fuel batch, feedstock origin, producer and emissions reduction.
Frequently asked questions
What is the phased blending mandate schedule for SAF in India?
The draft proposes 1% SAF in 2027, 2% in 2028, 3% in 2029, 5% in 2030, and an indicative target of 20% by 2040.
What financial incentives are being considered to promote SAF production?
Proposed incentives include GST exemption or reduction, import duty waivers, income‑tax holidays, accelerated depreciation, and support through existing or new schemes, green bonds, and tax concessions.
What feedstocks can India use to produce SAF?
India has about 230 million tonnes of surplus agricultural residue, and can also use used cooking oil and ethanol as feedstocks for SAF.