New Delhi: The Centre has proposed making sustainable aviation fuel (SAF) blending mandatory for international flights departing from India from January 2027, beginning with a 1% blending requirement and gradually increasing the target to 20% by 2040.
The proposal is part of the Ministry of Civil Aviation’s Draft SAF Policy, 2026, which outlines a phased roadmap for introducing cleaner aviation fuel into India’s international air transport sector. The proposed blending requirement would rise to 5% by 2030 before moving towards the longer-term target of 20% by 2040.
The draft also proposes penalties for airlines and oil marketing companies (OMCs) that fail to meet the prescribed blending requirements. These provisions are intended to establish a compliance framework as India prepares for the next phase of international aviation’s carbon-reduction efforts.
The proposal is still at the draft-policy stage. It should not be treated as a final regulation or as confirmation that the higher blending targets have already become enforceable.
SAF blending proposed in two phases
The draft policy outlines a two-phase approach to increasing the use of sustainable aviation fuel.
The first phase would begin in January 2027 with a proposed 1% SAF blending requirement for international flights. The target would increase to 5% by 2030.
The second phase would focus on a longer-term increase in the use of SAF, with the blending target proposed to reach 20% by 2040.
The phased approach is intended to give the aviation and fuel industries time to develop the production capacity, supply chains and airport infrastructure needed to support wider adoption.
| Proposed milestone | SAF blending target |
|---|---|
| January 2027 | 1% |
| 2030 | 5% |
| 2040 | 20% |
The targets in the draft go beyond the indicative blending roadmap previously announced by the government. The earlier targets were 1% in 2027, 2% in 2028 and 5% in 2030, initially for international flights.
The proposed 20% target for 2040 would therefore represent a longer-term expansion of India’s SAF ambitions.
Airlines and oil companies may face penalties
One of the significant features of the draft policy is the proposed enforcement mechanism.
Airlines and oil marketing companies could face penalties if they fail to comply with the SAF blending requirements
The proposal would give the blending targets a compliance dimension rather than leaving them only as indicative milestones. However, the report does not specify the proposed penalty amounts, the detailed calculation method or the procedure through which non-compliance would be assessed.
Those details will be important for airlines and fuel suppliers as they evaluate the financial and operational implications of the proposed policy.
Airlines would need access to sufficient quantities of eligible SAF, while oil marketing companies would have to ensure that the fuel is produced, blended and supplied in accordance with the required specifications.
The final policy will determine how the responsibilities are distributed and how compliance is monitored.
Draft proposes 90% aviation fuel uplift requirement
The proposed SAF policy also addresses the way airlines purchase and carry aviation turbine fuel (ATF).
It proposes that domestic and international airlines uplift at least 90% of their annual ATF requirements from international airports in India.
The provision is aimed at discouraging what is known as economic tankering. This practice involves airlines carrying additional fuel from an airport where fuel is relatively cheaper so that they can reduce purchases at another airport where fuel costs are higher.
Although fuel tankering can offer airlines a commercial advantage in certain circumstances, it can also affect fuel demand and airport operations at the destination.
The proposed 90% requirement would encourage airlines to source most of their annual fuel requirements through India’s international airport network.
The provision would apply to both domestic and international airlines, according to the draft described in the report. Its implementation would depend on the final policy provisions and the mechanism adopted for monitoring annual fuel purchases.
Airports to prepare SAF storage and distribution infrastructure
The draft also assigns responsibilities to airports as part of the proposed SAF supply chain.
Airports would be required to ensure that infrastructure for SAF storage, handling and distribution is in place. They would also have to coordinate with oil marketing companies to facilitate fuel logistics and blending operations.
The availability of appropriate infrastructure will be essential if the proposed blending requirements are to be implemented across international airports.
SAF cannot be introduced into the aviation fuel supply chain without meeting the required quality and sustainability standards. Storage, handling, distribution and blending arrangements must therefore be developed in coordination with fuel suppliers and airport operators.
The proposed responsibilities indicate that the policy is intended to cover the wider aviation fuel ecosystem rather than placing the entire implementation burden on airlines.
What is sustainable aviation fuel?
Sustainable aviation fuel is a renewable alternative to conventional petroleum-based aviation turbine fuel. It can be produced from alternative feedstocks such as used cooking oil, agricultural and biogenic residues, crops and other waste materials.
SAF is processed into aviation-grade hydrocarbons that can be blended with conventional jet fuel, subject to applicable technical and sustainability requirements.
The Union government has already taken steps to bring SAF-blended aviation fuel within India’s regulatory framework. In April 2026, the Ministry of Petroleum and Natural Gas announced an amendment to the Aviation Turbine Fuel Control Order, bringing SAF blended with ATF under the order’s scope.
The government said SAF must meet the relevant quality specifications and, where applicable, the sustainability criteria required for recognition as a CORSIA-eligible fuel.
The use of SAF can help reduce lifecycle greenhouse gas emissions compared with conventional aviation fuel, depending on the feedstock and production pathway. It can also help airlines reduce their carbon-offsetting requirements under international aviation rules.
India preparing for CORSIA requirements from 2027
The proposed SAF policy comes as India prepares for the mandatory phase of the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation, commonly known as CORSIA.
CORSIA is a global framework intended to address the growth in carbon emissions from international aviation. Under the scheme, airlines are required to offset emissions above the applicable baseline.
India is required to participate in the mandatory phase from 2027. The use of eligible sustainable aviation fuels can help airlines reduce their offsetting requirements under the framework.
The government had previously approved indicative SAF blending targets of 1% by 2027, 2% by 2028 and 5% by 2030 for international flights. The proposed draft policy seeks to establish a more detailed implementation and compliance framework around the transition.
Cost, supply and implementation remain important considerations
The proposed targets will require coordination among airlines, fuel producers, oil marketing companies and airport operators.
One of the major challenges is ensuring that sufficient SAF is available at the required quality and price. Production capacity, availability of feedstock, certification and distribution infrastructure will all influence how quickly the sector can increase blending.
SAF has generally been more expensive to produce than conventional aviation fuel. The extent to which additional costs are passed on to airlines or passengers will depend on production economics, supply arrangements and the final regulatory framework.
The government has previously indicated that it wants to encourage SAF adoption while limiting the financial burden on airlines and passengers. Public-sector oil companies have also been working on pilot and commercial-scale production facilities, including standalone and refinery co-processing projects.
The final policy will need to clarify the blending obligations, penalty provisions, monitoring arrangements and responsibilities of the various stakeholders.
Draft policy sets out a longer-term aviation fuel transition
The proposed 1% blending requirement from January 2027 and the target of 20% by 2040 mark a significant expansion of India’s stated SAF ambitions.
If adopted in its proposed form, the policy would require changes across the aviation fuel supply chain, from production and certification to airport storage and distribution.
For airlines, the proposed rules could affect fuel procurement and operating costs. For oil marketing companies, they would create a need to expand eligible fuel production and supply. Airports would also have to prepare the infrastructure needed to handle and distribute SAF.
The draft is an important step in shaping India’s approach to cleaner aviation fuel, but the final policy and its detailed implementation provisions will determine how the targets are translated into enforceable requirements.