Civil Aviation Minister Ram Mohan Naidu Kinjarapu recently said the government will soon unveil India’s Sustainable Aviation Fuel (SAF) Policy, and highlighted the country’s strong potential to become a global leader in SAF production. The move signals a major step in India’s push to decarbonise aviation while creating new industrial and rural opportunities.
Why SAF matters for India
- Cutting emissions: SAF can significantly reduce lifecycle carbon emissions from aviation compared with conventional jet fuel.
- Energy security: Local SAF production reduces dependence on imported crude and jet fuel.
- Value for agriculture: Feedstocks for certain SAF pathways can create new markets for agricultural residues and waste oils.
- Economic growth: New investments in production plants, supply chains and certification capacity can create jobs and boost manufacturing.
What the upcoming SAF Policy may cover
While final details are pending, the policy is expected to combine regulatory clarity with incentives to scale production and demand. Potential elements include:
- Blending targets: Gradual mandates for SAF blending into conventional jet fuel to create assured demand.
- Fiscal support: Tax breaks, duty exemptions or performance-based incentives for producers and early adopters.
- Sustainability criteria: Clear rules on feedstock sourcing to avoid negative land-use and social impacts.
- R&D and certification: Support for technology development, testing facilities and fast-track certification processes.
- Infrastructure investment: Grants or facilitation for SAF plants, storage, and airport fuelling systems.
Business and export potential
India has several advantages that could underpin a competitive SAF industry: a large supply of agricultural residue and used cooking oil, a strong refining sector that can be retrofitted, and growing international demand for low-carbon jet fuels. If policy creates predictable demand and supportive incentives, the country could attract investment, develop export capacity, and position itself as a regional SAF hub.
Key challenges to resolve
- Feedstock availability and sustainability: Ensuring reliable supply without harming food security or ecosystems.
- Cost gap: SAF remains more expensive than conventional jet fuel; incentives or carbon pricing will matter.
- Scale and logistics: Building plants and distribution networks quickly enough to meet mandates.
- Regulatory alignment: Coordinated rules across ministries, airports, and civil aviation regulators are essential.
What to watch next
The imminent SAF Policy announcement will be a key milestone for airlines, fuel producers, investors and farmers. Clear targets and market signals will determine how fast India can convert potential into production, cut aviation emissions, and capture economic benefits. If designed well, the policy could help India emerge as a global SAF supplier while supporting national climate and development goals.