National Policy on Sustainable Aviation Fuel (SAF)

07.11.2025

National Policy on Sustainable Aviation Fuel (SAF)

Announcement and Context
 The Ministry of Civil Aviation, led by Ram Mohan Naidu, announced that India will soon unveil a National Policy on Sustainable Aviation Fuel (SAF). The policy seeks to reduce aviation emissions while fostering domestic economic growth and employment opportunities.

What is SAF?

• Definition: SAF is a biofuel alternative derived from agricultural residue, waste cooking oil, municipal solid waste, and algae.
   
• Compatibility: Chemically similar to conventional jet fuel; usable in existing aircraft engines without modifications.
   

Environmental Significance

• Aviation contributes 2.5–3% of global CO₂ emissions.
   
• SAF can cut lifecycle carbon emissions by 70–80%, aiding in decarbonizing air travel.
   

India’s Potential and Blending Targets

• Biomass Availability: India generates ~750 million tonnes annually, including 213 million tonnes of agricultural residue.
   
• Refinery Capacity: IOC, BPCL, and HPCL can produce ~70 million liters of SAF per year.
   
• Blending Targets:
   
  • 1% by 2027
     
  • 2% by 2028
     
  • 5% or more by 2030
     
• International Compliance: Targets aligned with ICAO CORSIA, mandatory for international flights from 2027.
   

Economic Benefits

• Global Market: SAF demand expected to rise 90-fold by 2040.
   
• Exports: Potential for India to supply SAF to the EU and USA.
   
• Rural Livelihoods: Farmers can monetize agricultural waste.
   
• Import Reduction: Cuts fossil fuel dependence; may save USD 5–7 billion annually.
   
• Employment: Could generate over one million green jobs in SAF production and supply chains.
   

Challenges

• High Cost: 2–4 times costlier than conventional fuel; synthetic SAF is more expensive.
   
• Feedstock Logistics: Collection and transport of biomass are complex and seasonal.
   
• Infrastructure Needs: New bio-refineries and airport-adjacent blending facilities required.
   
• Policy Coordination: Inter-ministerial cooperation necessary across Civil Aviation, Petroleum, Agriculture, and Environment.
   
• Certification: Must meet international aviation fuel standards.
   

Government Initiatives

• Draft policy incorporating industry, government, and academic inputs is in advanced stages.
   
• Life cycle assessment and blending strategy studies by ISMA and TERI.
   
• Anticipated incentives and reforms to scale production and improve economic feasibility.
   

Conclusion
 India’s SAF policy is a strategic step toward sustainable aviation. By leveraging abundant biomass, fostering private investment, and reducing carbon emissions, India aims to enhance rural livelihoods, cut oil imports, and emerge as a global SAF leader, strengthening both climate and energy security.