New Delhi: India is likely to mandate a 1% blend of Sustainable Aviation Fuel (SAF) in conventional jet fuel for international flights from 2027, followed by 2% in 2028 and 5% in 2030, industry sources said, amid concerns over delays in finalising a domestic policy ahead of the implementation of global aviation emissions requirements, The Hindu reported.
The proposed blending targets are linked to the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), adopted by the International Civil Aviation Organization (ICAO) in 2016 to address carbon emissions from international aviation. CORSIA’s mandatory phase is scheduled to begin in 2027, increasing pressure on countries and airlines to meet emissions compliance requirements.
Industry sources said an official announcement on India’s proposed SAF blending obligations was expected soon. However, the country is yet to finalise a comprehensive domestic SAF policy covering blending mandates, pricing mechanisms, domestic production and export provisions.
Under CORSIA, airlines must address emissions growth covered by the scheme through eligible emissions units and other qualifying measures. The scheme’s mandatory phase will run from 2027 to 2035, covering international flights between participating ICAO member states in accordance with the programme’s rules.
Indian airlines are estimated to face an annual carbon-offsetting liability of around five million tonnes of CO₂, according to Rohit Kumar, secretary general of the SAF Association. At an estimated price of $10–15 per eligible carbon credit, the annual liability could amount to $50–75 million.
Air India is expected to account for a significant share of this exposure because of its extensive long-haul and ultra-long-haul international operations.
Industry seeks policy clarity and investment support
With the mandatory phase approaching, industry stakeholders have called for clearer regulatory arrangements covering carbon-credit eligibility, international authorisation of emissions-reduction projects, and airline-level emissions reporting and compliance.
A comprehensive policy could also help attract investment, support domestic supply chains, accelerate technology development and facilitate international partnerships, Kumar said.
The industry is seeking permission to export SAF as India explores opportunities to become a global production and export hub. Potential feedstocks include used cooking oil, agricultural residues and other sustainable raw materials.
An ICAO feasibility study estimates India’s SAF production potential at 14 million to 33 million tonnes, depending on the feedstocks and production pathways assessed. However, translating this potential into commercial output will require investment in production facilities, supportive policies and reliable feedstock supply chains.
Panipat refinery to support initial SAF supply
Indian Oil Corporation’s Panipat refinery is preparing to support India’s initial SAF requirements. The facility is reported to have a capacity of around 30,000 tonnes for meeting the proposed 1% blending target in 2027.
The refinery co-processes used cooking oil with conventional fuel and is also developing an alcohol-to-jet (ATJ) unit to expand sustainable aviation fuel production.
Oil marketing companies are seeking government subsidies and offtake guarantees to support investment in SAF manufacturing. Airlines, meanwhile, want measures to narrow the price gap between SAF and conventional aviation turbine fuel (ATF), with SAF currently estimated to cost two to five times as much as conventional jet fuel.
Global mandates increase pressure on Indian carriers
Several international markets have already introduced SAF blending requirements that affect Indian airlines operating flights from airports in those jurisdictions.
The European Union mandated a 2% SAF share in aviation fuel supplied at covered EU airports from 2025, rising to 6% by 2030. The United Kingdom introduced a 2% mandate in 2025, with the requirement scheduled to increase to 10% by 2030.
Singapore has also introduced a 1% SAF target from January 1, 2027, supported by a mandatory levy on departing flights.
These measures mean Indian airlines must account for applicable SAF requirements when operating from airports covered by foreign mandates, even as India works towards establishing its own regulatory framework.
A clear domestic policy, industry stakeholders say, will be critical to building production capacity, ensuring competitive fuel supplies and positioning India to participate in the growing global SAF market.
