Policy framework nearing completion
India Ministry of Civil Aviation is finalising a Sustainable Aviation Fuel policy that will set clear blending milestones, production incentives and certification standards. The document, prepared through a stakeholder working group, is expected to launch within months, giving airlines confidence to plan fuel procurement through 2030 and beyond.
Harnessing abundant biomass
With more than seven hundred fifty million tonnes of agricultural residue generated annually, India holds a vast supply of feedstock. Converting crop waste into jet grade biofuel not only diverts material that would otherwise be burned but also provides farmers revenue. Economic modelling from Indian institutes suggests that even a five percent national SAF blend could raise rural incomes by up to fifteen percent.
Industrial readiness
Indian Oil Corporation has already secured international certification for SAF production at its Panipat refinery, targeting thirty five thousand tonnes per year from used cooking oil. The achievement demonstrates that domestic infrastructure, originally designed for conventional petroleum, can process advanced biofuels with minimal retrofitting. This compatibility sharply lowers capital expenditure compared with greenfield plants.
Non-obvious insight
Because India freight rail network runs close to major sugarcane belts, the policy will likely bundle rail freight rebates for transporting biomass to refineries. This logistical tweak can cut feedstock delivery costs by nearly a quarter, making domestic SAF price competitive even before accounting for carbon benefits.
National and global impact
Blending targets of one percent in 2027, two percent in 2028, and five percent in 2030 will require roughly one billion litres of SAF annually by decade end. Meeting that demand may position India as an exporter, particularly to regional hubs seeking reliable supplies.
Conclusion
By pairing abundant resources with smart incentives and thoughtful logistics, India is poised to transform agricultural leftovers into a high value aviation energy market, supporting climate goals, rural prosperity and energy independence simultaneously.