India’s clean energy and bioenergy transition received a boost after Indian Oil Corporation Limited approved a joint venture project to establish a Sustainable Aviation Fuel (SAF) plant at Paradip in Odisha, aimed at supporting lower-carbon fuel production for the aviation sector.
The company’s board has approved the formation of a 50:50 joint venture with M11 Energy Transition Pvt. Ltd. for the development of a 100 KTPA Sustainable Aviation Fuel facility, Chemindigest reported.
Under the approved structure, the new joint venture company will be incorporated in India with equal ownership between both partners. The project is intended to strengthen India’s sustainable aviation fuel ecosystem as the country increases efforts to reduce carbon emissions from air transport.
However, the project will still require approvals from NITI Aayog, the Department of Investment and Public Asset Management (DIPAM), and other regulatory authorities before implementation moves forward.
The proposed plant will be located at Paradip, a major industrial and refining centre on India’s eastern coast. According to the company, the facility will use Hydroprocessed Esters and Fatty Acids (HEFA) technology, which is widely used for producing sustainable aviation fuel from renewable feedstocks with lower carbon emissions.
The location is expected to support smoother integration with existing refining and logistics infrastructure already present at Paradip.
The estimated cost of the project is around ₹1,063.60 crore, with a possible variation of ±30%, reflecting the project’s early planning stage and pending approvals.
The SAF project forms part of India’s wider energy transition strategy as demand for cleaner aviation fuels continues to rise globally. Through the investment, Indian Oil aims to support the decarbonisation of the aviation industry while expanding the country’s renewable and low-carbon fuel capabilities.
