India to unveil SAF policy soon, targeting 1% blending by 2027

(NEW DELHI) India will “very soon” unveil a comprehensive Sustainable Aviation Fuel policy, Civil Aviation Minister K Rammohan Naidu said on November 6, 2025, setting out early blending targets and promising large economic and environmental gains as the country seeks to cut jet emissions and curb oil imports. Speaking at the India Sustainable Aviation Fuel Summit 2025 in New Delhi, Naidu said the government’s draft is in its final stages and signaled a push to mobilize farmers, state-run oil companies and private refineries to build a domestic green fuel industry at scale.

“The Ministry is drafting the SAF Policy and will release it soon. As an agricultural powerhouse with over 750 million tonnes of biomass, India has the capacity to lead globally in SAF production,” Naidu stated.

He framed the Sustainable Aviation Fuel policy as a pivotal tool to match the aviation sector’s rapid expansion with measurable climate action, arguing that a steady shift to cleaner fuel would underpin growth while easing pressure on the country’s energy bill.

Naidu outlined the first set of blending goals the government intends to pursue, starting with 1% SAF mixed into aviation turbine fuel by 2027, rising to 2% in 2028, and reaching 5% by 2030. The minister emphasized that SAF is certified as a “drop-in” fuel for Aviation Turbine Fuel, meaning it can be blended with conventional jet fuel and used in existing aircraft without engine modifications, a practical feature that lowers adoption barriers for airlines and airports.

He linked the policy directly to India’s farm economy, arguing that the fuel’s feedstock pathway could transform agricultural waste into value.

“From feedstock to fuel, from farmers to flyers, and from frying to flying, who would have actually imagined that (those) frying samosas also can participate in this whole global aviation movement (on SAF),” Naidu remarked, describing how used cooking oil and crop residues could feed new supply chains.

Government estimates cited at the summit put India’s available biomass at more than 750 million tonnes, including 213 million tonnes of surplus agricultural residue each year—material that often goes unused or is burned, contributing to seasonal air pollution.

The minister paired those supply numbers with a promise of broad-based benefits if production scales as planned.

“SAF will not only help in addressing the challenge of growth versus sustainability but will also benefit with its huge scale impact by reducing crude oil import bill by USD 5–7 billion every year along with creating 1 million green jobs across the SAF value chain,” he added.

Officials also said farmers’ incomes could rise by 10–15% if agricultural residues and other feedstocks gain steady demand from biofuel producers, though details on procurement mechanisms and price support were not disclosed at the event.

The timeline Naidu presented fits a sector that is expanding quickly. India’s aviation turbine fuel consumption is projected to reach 15–16 million tonnes by 2030 and 30–31 million tonnes by 2040, according to figures shared at the summit. The aviation market is growing at 6.7% annually, with nearly 10 million passenger trips expected in 2025, while domestic carriers have booked orders for more than 1,700 aircraft. Those orders point to long-term fleet growth, which will push fuel demand higher—making lower-carbon alternatives a central part of any plan to keep emissions in check.

Naidu pressed industry to move with the same speed as regulators, underscoring that state-run companies alone cannot close the supply gap.

“Private refineries and companies must be part of this. If we want to become a major exporter, the private sector has to be on board,” he said.

Bringing private players into the fold, he argued, will be critical to attract investment, build refineries, and cement supply contracts that give airlines confidence to commit to higher blends. The government expects the policy to catalyze investment, spur innovation across the value chain and open doors for international partnerships—especially with countries and carriers seeking green fuel supplies in Asia.

A core selling point for airlines is emissions reduction potential. SAF can cut carbon dioxide emissions by up to 80% compared with fossil jet fuel over its lifecycle, depending on the feedstock and production pathway. Even at low blends, that can translate into measurable reductions in carriers’ reported emissions, helping airlines meet internal sustainability goals and respond to tightening disclosure rules from financiers and global customers. Globally, the need for SAF is projected at 183 million tonnes by 2040, a figure cited at the summit that highlights both the size of the challenge and the scale of the market for any country that moves early to build export capacity.

For New Delhi, anchoring SAF manufacturing in India would also serve broader economic policy aims. Officials framed the push as part of a strategy to lower exposure to crude price swings and build green jobs in rural areas, from aggregating agri-residue to operating biorefineries. With 213 million tonnes of surplus agricultural residue available, the government sees a chance to replace burning and disposal with feedstock sales to fuel makers. If realized, those sales could add a fresh revenue stream for farmers who often face volatile crop prices and limited off-season income. At the same time, urban waste streams like used cooking oil could be tapped in large cities, tightening the loop between food systems and energy in ways that supporters say deliver both climate and public health gains.

Senior aviation and industry figures at the summit cast SAF as a strategic opportunity for India’s aerospace ecosystem. Faiz Ahmed Kidwai, Director General of Civil Aviation, said India is aiming for a 5% SAF blending target by 2030, describing the move as a declaration of intent to lead by example in Asia. Jurgen Westermeier, Chairman of the FICCI Civil Aviation Committee and President & Managing Director, Airbus India & South Asia, called SAF a “transformative opportunity” for India. Ashish Saraf, Co-Chairman of the FICCI Civil Aviation Committee and Vice President & Country Head (India), Pratt & Whitney, described SAF as the “cornerstone of India’s Net Zero aviation story”.

The details disclosed by Naidu suggest a phased approach, designed to build confidence among fuel producers and airlines through predictable, early targets. A 1% mandate by 2027 sets a near-term floor that could help de-risk first-wave investments in production capacity. Doubling to 2% in 2028 would keep momentum without overwhelming supply, while 5% by 2030 signals a clear direction of travel for the next five years of fleet and infrastructure planning. The government did not specify penalties or incentives linked to those percentages, and it was not immediately clear how the targets might interact with state-level policies or existing biofuel programs. Officials said the policy text would clarify compliance timelines and mechanisms once released.

India’s case for a domestic Sustainable Aviation Fuel policy rests in part on comparative advantages the minister enumerated: abundant biomass, a large refining base, and a fast-growing aviation market that can absorb initial volumes. Naidu made a point of highlighting non-traditional feedstocks, like used cooking oil, to underline the breadth of potential suppliers. His “frying samosas” line drew laughter in the hall and pointed to the goal of building mass participation—linking small businesses, waste managers and farmer producer organizations to the aviation energy supply chain.

The potential reduction in India’s crude import bill—USD 5–7 billion a year once SAF scales—is a marquee figure that will be closely watched by economists, especially given the projected rise in jet fuel consumption. Any relief on imports would come as global oil markets remain sensitive to geopolitical shocks. Energy analysts say the shape of the savings will depend on feedstock prices, conversion efficiencies, and the share of production that is exported versus consumed domestically. Building export capacity is one reason Naidu pushed for private-sector involvement, arguing that international orders will require guaranteed volumes and quality that diversified producers are better placed to deliver.

Airlines will nonetheless weigh costs carefully. SAF typically carries a price premium over conventional jet fuel, and the extent to which that gap can be narrowed through economies of scale, tax policy or carbon pricing will influence uptake. The minister did not discuss pricing at the summit, but he encouraged oil companies and private refineries to come forward with project plans as the policy is finalized. Industry executives in the audience nodded to the importance of long-term offtake agreements, which allow refineries to finance plants and airlines to budget for blends that rise over time.

Technical readiness is not a barrier at early blend levels. SAF has been tested widely and approved under international fuel standards for blends with Aviation Turbine Fuel, and Indian carriers have staged demonstration flights in recent years using blended fuel. The operational question is less about engine compatibility and more about building the logistics to move feedstock to biorefineries and then move finished fuel to airports. That means new storage, blending and quality control systems across a network that now handles conventional ATF. Naidu’s insistence on “from farmers to flyers” hinted at an end-to-end approach, bringing agriculture, energy and aviation regulators into the same room.

Globally, governments are turning to mandates and subsidies to kick-start supply that remains a fraction of demand. The 183 million tonnes figure for 2040 underscores the gap. For India, the early targets—backed by large domestic feedstock potential—offer a path to carve out a share of that market. If the Sustainable Aviation Fuel policy lands as described, the next steps will likely include state-run oil marketing companies issuing tenders, private consortiums announcing projects, and airlines committing to multi-year purchases to meet the 2027 and 2028 waypoints.

The summit, organized by the Ministry of Civil Aviation and the Federation of Indian Chambers of Commerce and Industry in New Delhi, served as the launchpad for this final push to publish the policy. It drew officials, airline executives, engine makers and global manufacturers, all of whom have a stake in how quickly supply can scale and at what cost. As Naidu put it, the aim is to align a booming aviation market with a fuel plan that cuts emissions, supports rural incomes and reduces exposure to imported oil—without slowing the industry’s momentum.

India’s aviation story is already being written in aircraft orders and growing route maps; the Sustainable Aviation Fuel policy is intended to add a new chapter in how that growth is powered. The numbers shared—over 750 million tonnes of biomass, 213 million tonnes of surplus agricultural residue, ATF consumption reaching up to 31 million tonnes by 2040, and a potential 80% reduction in emissions compared with fossil jet fuel—are the building blocks of that plan. What comes next is the policy text itself, which Naidu said is imminent, and the flurry of commercial deals that will determine whether the 5% blending target in 2030 is a floor that can be raised or a ceiling that will require further incentives to surpass.

For official updates as the policy is finalized and released, the government directed stakeholders and the public to the Ministry of Civil Aviation, where notices and detailed guidelines will be posted once approved.