India is developing a national policy on sustainable aviation fuel (SAF) to align with international emission standards and achieve net-zero by 2070.
The policy aims to position India as a key player in the SAF market, with blending targets set for 2027, 2028, and 2030.
Challenges include cost, classification, and feedstock availability.
With international rules on aviation emissions set to tighten, India is preparing a national policy on sustainable aviation fuel (SAF), along with a long-term roadmap through 2050, said three people aware of the matter.
The initiative aims to ensure compliance with the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which will be mandatory after 2027, while positioning the country as both a user and supplier of green aviation fuels.
India has set blending targets of 1 per cent by 2027, 2 per cent by 2028 and 5 per cent by 2030 for international flights to curb emissions, achieve energy self-reliance and advance its net-zero goal by 2070.
As part of the plan, the Indian Sugar & Bio-energy Manufacturers Association (ISMA) and Deloitte are working on blending targets, and ISMA has also partnered with The Energy and Resources Institute (TERI) to conduct a Life Cycle Assessment (LCA) of sugarcane-based SAF using syrup, molasses and bagasse. two bio-energy industry executives said.
The outcomes of this study will be critical for drafting a national SAF policy. “Committees have already been formed, and discussions with stakeholders are underway to develop a comprehensive national SAF policy,” said one of the industry executives part of the committee.
The approach aims not only to meet India’s domestic blending targets but also to position the country as a future supplier of SAF to international markets.
The conversation, however, revolves around cost, classification and scalability. SAF currently costs around three times more than conventional jet fuel, while synthetic SAF is nearly seven times costlier.
“While ethanol-based fuels can play a supporting role, synthetic SAF represents a separate and more advanced pathway that requires strong policy backing and investment,” said the committee member.
Industry stakeholders are also pushing for SAF to be formally brought under the bioenergy sector, as it is still classified under fossil fuels. “Reclassification would allow SAF to access incentives already available in the bioenergy space, such as those under the Gobardhan scheme, which currently excludes aviation fuels despite their higher economic value compared with biogas or small-scale projects,” the committee source added.
Traditional SAF is produced from waste oils and biomass, while synthetic SAF — also known as Power-to-Liquid — is created by synthesising fuel from carbon dioxide and water using renewable electricity. “A techno-commercial roadmap for SAF production in India includes a detailed analysis of blending targets, feedstock availability, infrastructure readiness, and the investment landscape until 2050 for the country to become an export hub,” said another bioenergy industry source involved in the development.
The policy is being steered jointly by the ministry of petroleum and natural gas (MoPNG) and the ministry of civil aviation (MoCA). While MoPNG will focus on production, certification and feedstock development, MoCA will handle implementation, airline blending obligations, airport readiness and compliance with ASTM D7566 and CORSIA standards. Other ministries, including New and Renewable Energy, Environment, Finance and the Department for Promotion of Industry and Internal Trade, will support incentives, sustainability criteria and trade facilitation.
The development was verified by an official from the central government think tank Niti Aayog, which is also part of the committee.
Queries sent on September 9 to the secretaries and spokespersons of the ministries mentioned above and to the Niti Aayog chief executive remained unanswered till the time of publication of this story.
The LCA study on sugarcane-based SAF holds strategic significance since India currently lacks an LCA value in the CORSIA qualification framework. Brazil, with sugarcane, and the United States, with corn, already have benchmarks in place. “The report is under preparation and expected to be completed in a month,” said Souvik Bhattacharjya, senior fellow and director at TERI, in an emailed response.
Production capacity, according to government officials, is not a concern. Food ministry secretary Sanjeev Chopra said the estimated requirement for a 20 per cent ethanol blending target is 17 billion litres, while India already has an installed capacity of 18.25 billion litres, with another 2.5 billion litres in the pipeline.
“Further expansion is also being supported through the interest subvention scheme for the cooperative sector, which is adding to capacity creation. This ensures that production capacity itself will not be a limiting factor,” Chopra told this reporter last month.
He added that the key challenge lies in feedstock availability. “Ensuring a reliable and sustainable feedstock supply chain is now the government’s main focus, and dedicated efforts are underway to strengthen this aspect.”
Chopra also confirmed that standards for SAF are still being developed. “The government is actively working on finalising these standards, and once in place, they will provide clarity and certainty for producers and airlines alike. There is strong optimism that, by 2030, India will be able to achieve its 5 per cent SAF blending target, supported by robust capacity, clear standards, and coordinated policy measures,” he said.
Under the CORSIA framework, meeting the 5 per cent blending target for international flights by 2030 would require about 60 crore litres of ethanol if no other feedstocks are considered.
According to a 2024 Deloitte India report titled ‘Green wings: India’s Sustainable Aviation Fuel (SAF) revolution in the making’, the country could produce 8-10 million tonnes of SAF annually by FY40, requiring investments of Rs 6-7 lakh crore ($70-85 billion). This scale of production could cut aviation emissions by 20-25 million tonnes a year and position the country as a global hub for green fuels.
Meanwhile, by the end of this calendar year, Indian Oil Corporation will have the capacity to produce 35,000 tonnes per year of SAF from used cooking oil, which will be sourced from large hotel chains, restaurants and sweets and snacks majors.