India to Mandate Sustainable Aviation Fuel Blending from 2027

Key Facts

• India plans to mandate 1% blending of Sustainable Aviation Fuel (SAF) in Aviation Turbine Fuel (ATF) starting January 2027, focusing initially on international flights.
• Indicative blending targets are 1% in 2027, 2% in 2028, and 5% by 2030.
• SAF has been officially recognised in India by a gazette notification dated 23 April 2026 permitting its blending with fossil-based jet fuel.
• Production routes include use of used cooking oil and alcohol-to-jet pathways; Indian Oil Corporation's Panipat refinery is scheduled to commence SAF production by September 2026.
• Bharat Petroleum is commissioning a co-processing unit at its Mumbai refinery by the end of 2026 to produce SAF.
• The Ministry of Petroleum & Natural Gas and Ministry of Civil Aviation have jointly prepared a roadmap linked to India's obligations under ICAO's CORSIA scheme.
• Estimated SAF demand for India is approximately 62,000 tonnes in 2027, rising to 130,000 tonnes in 2028, and 380,000 tonnes by 2030.
• Current blending targets remain indicative with comprehensive policy formulation ongoing; no specific policy for domestic flights yet notified as of December 2025.
• 1% SAF blending is projected to increase airfares by approximately Rs 100 to Rs 200 per ticket.

Background & Context

Sustainable Aviation Fuel (SAF) is a low-carbon aviation fuel made from renewable feedstocks such as used cooking oil, biomass, and agricultural residues. It can reduce lifecycle CO₂ emissions by up to 80% compared to conventional jet fuel. India aims to meet its international climate commitments through participation in the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), the mandatory phase of which begins in 2027 for international flights.

India’s strategy involves developing domestic SAF production capacity, leveraging abundant biomass resources and surplus agricultural residue. Indian Oil Corporation and Bharat Petroleum are key players establishing production facilities to meet anticipated demand. The policy focus initially targets international flights due to CORSIA’s scope, with possible extension to domestic flights in the future.

Why This Matters for Exams / Exam Relevance

This development is highly relevant for exams covering current affairs, environment, energy policy, and international commitments. Important elements include the phased SAF blending targets for 2027, 2028, and 2030; the role of CORSIA; key government ministries involved; and technical terms such as Aviation Turbine Fuel and Sustainable Aviation Fuel.

Understanding India's environmental strategies in aviation, its global commitments through ICAO, and ongoing infrastructure developments like refinery commissioning are crucial topics for general studies, environment, and policy sections of competitive exams.

Points to Remember

• SAF blending mandatory at 1% from 2027, increasing to 5% by 2030 for international aviation.
• SAF officially recognized in India by gazette notification on 23 April 2026.
• Indian Oil’s Panipat refinery to produce SAF from used cooking oil starting September 2026.
• Alcohol-to-jet (ATJ) technology is among production pathways considered.
• CORSIA mandatory phase begins 2027, driving SAF implementation in international flights.
• Estimated impact on airfares due to 1% SAF blending is Rs 100-200 per ticket.
• Comprehensive policy for SAF blending is being formulated; domestic blending policy pending.