Draft National Policy on Sustainable Aviation Fuels: Mandatory Blending in Jet Fuel from 2027
The Ministry of Civil Aviation has circulated a draft National Policy on Sustainable Aviation Fuels. It proposes making it compulsory to blend (mix) Sustainable Aviation Fuel (SAF) into Aviation Turbine Fuel (ATF, normal jet fuel) from 2027.
Blending would start at 1% in 2027 and rise to 5% by 2030 (Phase 1, 2027 to 2030). It would then rise to 40% by 2040 (Phase 2, 2031 to 2040).
Only SAF made in India would count for blending. Indian and foreign airlines flying international routes would also have to buy at least 90% of their yearly fuel for those flights at Indian airports. This stops "economic tankering" (carrying extra fuel from cheaper airports abroad, which burns more fuel).
The draft proposes a National Council on Sustainable Aviation Fuel (NC-SAF) to coordinate the work, a digital SAF Registry under the DGCA (Directorate General of Civil Aviation) to track SAF sales, and a SAF Innovation Seed Fund for pilot projects and start-ups.
Support measures include tax relief (GST cuts, import duty waivers, income-tax holidays), viability gap funding, green finance and help for refineries to upgrade.
The draft estimates India could make about 10 million tonnes of SAF a year by 2040, needing USD 70 to 85 billion of investment, from feedstocks like farm residue, used cooking oil, city waste, industrial waste and fuels made from green hydrogen.
Sustainable Aviation Fuel (SAF): Science and Significance
Sustainable Aviation Fuel is jet fuel made from renewable or waste materials instead of crude oil. It can be made from used cooking oil, animal fat, farm waste, city waste, or even captured carbon combined with green hydrogen. Once made, it behaves just like normal jet fuel, so it is mixed with ATF and used in today's planes and airports without any change. It is "sustainable" because, over its whole life, it can cut carbon emissions a lot compared with fossil jet fuel.
The draft turns SAF blending from a soft target into a legal duty. The "Indian-made only" rule is meant to build a domestic SAF industry rather than import it.
CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation)
CORSIA is a worldwide plan to stop carbon emissions from international flights from growing without control. It is run by the International Civil Aviation Organization (ICAO), the United Nations body for civil aviation. If an airline's international flights emit more carbon dioxide than a set baseline, the airline must cancel out the extra by buying approved carbon credits, or reduce it by using eligible fuels like SAF.
The SAF blending start year, 2027, matches the start of CORSIA's mandatory phase. Blending SAF will help Indian airlines lower what they owe under CORSIA on international routes.
National Policy on Biofuels, 2018 (Amended 2022)
The National Policy on Biofuels is India's main plan for making and using fuels that come from plants, waste and other living (biological) material, instead of from crude oil. It sets targets for mixing these fuels into petrol and diesel, decides which raw materials can be used, and offers support to companies that build biofuel plants. It was first made in 2009, replaced by a new policy in 2018, and amended in 2022. It is the umbrella under which India's ethanol blending, biodiesel and newer fuels like sustainable aviation fuel are promoted.
The draft SAF policy builds on the biofuel framework this policy created: the same NBCC set India's first SAF targets in 2023, and the same farm residue and waste feedstocks will be used. India's success with E20 ethanol is the model the government now wants to repeat for jet fuel, starting with 1% blending in 2027.
- Draft policy: National Policy on Sustainable Aviation Fuels, circulated by the Ministry of Civil Aviation (November 2026)
- Blending path: 1% in 2027, 5% by 2030 (Phase 1: 2027 to 2030), 40% by 2040 (Phase 2: 2031 to 2040)
- Only indigenously manufactured SAF can be blended with ATF
- Fuel uplift rule: at least 90% of annual sector fuel for international services to be bought at Indian airports
- Proposed bodies: National Council on Sustainable Aviation Fuel (NC-SAF); SAF Registry under DGCA; SAF Innovation Seed Fund
- SAF potential: about 10 million tonnes a year by 2040; investment needed USD 70 to 85 billion
- ATF consumption: about 8.2 million tonnes now, about 14.2 million tonnes by 2030
- Earlier NBCC indicative SAF targets (November 2023): 1% in 2027 and 2% in 2028 for international flights
- CORSIA mandatory phase begins: 2027