The government has proposed a phased mandatory blending of Sustainable Aviation Fuel (SAF) with conventional Aviation Turbine Fuel (ATF) for international flights, starting with a 1% blend from January 2027 and gradually increasing it to 5% by 2030 and 20% by 2040. The proposal is part of the draft National Policy on Sustainable Aviation Fuels (SAF)-2026 released by the Ministry of Civil Aviation.
Under the proposed roadmap, the SAF blending requirement will increase to 2% in 2028, 3% in 2029 and 5% in 2030. These targets will be mandatory during the first phase, covering 2027-2030.
For the subsequent phase, the draft policy has proposed indicative blending targets of 6% by 2031, 8% by 2032, 10% by 2035 and 20% by 2040. The targets beyond 2030 will be made mandatory based on decisions by the proposed National Council on Sustainable Aviation Fuel (NC-SAF), taking into account technological readiness, market conditions and supply-chain capacity.
The proposed mandate will initially apply to international aviation operations covered under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Domestic aviation operations of Indian carriers will not fall under the proposed airline fuel-uplift obligation.
The draft policy also proposes that both Indian and foreign airlines operating scheduled international services uplift at least 90% of their annual sector-specific fuel requirements from international airports in India. The provision is intended to prevent economic fuel tankering and create assured demand for domestically produced SAF.
An important aspect of the proposed policy is that only domestically manufactured SAF will be eligible for blending with conventional ATF under the mandate. Oil marketing companies and authorised fuel suppliers will be responsible for blending the fuel and ensuring its availability at airports. The policy envisages blending at SAF production facilities, refineries or intermediate storage facilities before supplying the fuel to airports.
However, scaling up SAF adoption could pose cost challenges for the aviation industry. The draft policy estimates that SAF could be at least two to three times more expensive than conventional jet fuel, requiring financial and policy support during the initial implementation phase. The government has proposed exploring financial incentives, green financing, tax support and viability gap funding to encourage investments in SAF production and infrastructure.
The draft policy also estimates that India’s SAF production potential could reach nearly 10 million tonnes annually by 2040, requiring investments of around $70-85 billion. Agricultural residues, used cooking oil, municipal solid waste and industrial waste streams have been identified as potential feedstocks for production.
The government aims to use these resources to build a domestic SAF ecosystem, reduce dependence on imported fossil fuels and position India as a global hub for sustainable aviation fuel production.
Govt Proposes Mandatory SAF Blending From 2027, Targets 5% For International Flights By 2030
