India Plans 1% Sustainable Aviation Fuel Blending

India has prepared a plan to mandate 1% blending of Sustainable Aviation Fuel in Aviation Turbine Fuel from January 2027. The Union Government has set indicative targets of 1% in 2027, 2% in 2028, and 5% by 2030, with the initial focus on international flights.

Sustainable Aviation Fuel

Sustainable Aviation Fuel, or SAF, is a low-carbon aviation fuel used in aircraft operations. India formally recognised SAF for aircraft operations through a gazette notification dated 23 April 2026, which amended Aviation Turbine Fuel regulations to permit SAF blending with fossil-based jet fuel.

Policy and Regulatory Framework

The Ministry of Petroleum & Natural Gas and the Ministry of Civil Aviation have prepared a roadmap linked to India’s obligations under the Carbon Offsetting and Reduction Scheme for International Aviation. The mandatory phase of CORSIA begins in 2027 for international aviation. As of 15 December 2025, no specific policy had been notified for SAF blending in domestic flights. The current blending targets remain indicative, and the government is formulating a comprehensive SAF policy for actual mandates.

Production Plans and Feedstock

Indian Oil Corporation is scheduled to begin SAF production from used cooking oil at its Panipat refinery by September 2026. Bharat Petroleum is commissioning a co-processing unit at its Mumbai refinery by the end of 2026. The alcohol-to-jet pathway is among the production routes being considered for a national SAF roadmap. The roadmap is expected to provide clarity on guaranteed offtake and support investment in SAF capacity.

Demand and Cost Estimates

India’s estimated SAF demand is 62,000 tonnes in 2027, 130,000 tonnes in 2028, and about 380,000 tonnes by 2030. Public sector companies have stated that they are on track to meet these requirements. The estimated impact of 1% SAF blending on airfares is about Rs 100 to Rs 200 per ticket.

Important Facts for Exams

• CORSIA stands for Carbon Offsetting and Reduction Scheme for International Aviation.
• SAF can be produced from used cooking oil, alcohol-to-jet feedstock, and other non-fossil sources.
• Aviation Turbine Fuel is the standard fuel used in jet aircraft.
• India’s SAF blending plan begins with international flights before wider application.