Pune: Sankla Renewables, a clean-energy platform of Sankla Buildcoon, has signed a memorandum of understanding with the Government of Maharashtra to set up a Rs15,000 crore Sustainable Aviation Fuel (SAF) manufacturing project at Chalisgaon in Jalgaon district, reports The realty Today.
The agreement was signed on the sidelines of the World Economic Forum meeting in Davos, Switzerland. The move highlights Maharashtra’s efforts to attract large industrial investments linked to clean energy and low-carbon growth. For the Sankla Group, the project marks an expansion beyond real estate into long-term clean energy manufacturing.
The proposed facility will produce aviation fuel using agricultural waste such as sugarcane bagasse, cotton stalks, soybean husk and pigeon pea residue. Internationally approved technologies will be used to convert this farm waste into fuel suitable for aircraft. Chalisgaon was selected for the project due to its location advantages and availability of raw materials.
The project will be developed in phases and is expected to be fully commissioned by 2029. This phased approach is aimed at spreading investment over time and managing operational risks as capacity increases.
The total planned investment for the project is ₹15,000 crore. The company said the facility is being planned as a long-life manufacturing asset with steady revenue prospects linked to rising demand for cleaner aviation fuel. The project supports national goals related to reducing fuel imports, improving energy security and cutting emissions from air travel, while also supporting industrial growth in the state.
Sankla Renewables said the project is being designed to meet global environmental and sustainability standards. Operations will be powered entirely by renewable energy, with full reuse of water and no liquid waste discharge. Internal transport within the facility will rely on electric vehicles, and the manufacturing process will be designed to keep emissions low.
The project is also expected to benefit rural areas by creating a steady market for agricultural waste. The company said it plans to enter into long-term supply arrangements with farmers, provide additional income opportunities in rural areas and help reduce the practice of burning crop residue in fields.
Once fully operational, the project is expected to create more than 3,000 direct and indirect jobs, along with several thousand additional jobs across transport, services and supply chains. Sankla Renewables said it will work with local institutions to provide training and skill development programmes to prepare a local workforce for long-term operations.
Commenting on the development, Sankla Buildcoon Director Sahil Sankla said the investment reflects the group’s move towards growth driven by sustainability. He said the company, which has spent over two decades delivering real estate projects to thousands of customers, now plans to apply the same execution focus to clean energy. He added that sustainable aviation fuel is a fast-growing segment and the company sees the project as a key part of India’s transition to cleaner energy sources.
