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India Draft Policy Would Require 20% SAF Blend by 2040, NDTV Profit Reports

The report also describes possible penalties and a 90% fuel-uplift rule. Official Indian targets remain indicative at 1% in 2027, 2% in 2028 and 5% in 2030.

Updated 2 min read
Ground crew refuel a passenger aircraft at Indira Gandhi International Airport in New Delhi / TokenPost.ai (mono)
Ground crew refuel a passenger aircraft at Indira Gandhi International Airport in New Delhi / TokenPost.ai (mono)

A draft Indian aviation policy would require a sustainable aviation fuel blend on international flights from January 2027 and raise it to 20% by 2040, NDTV Profit reported Nov. 3.

The outlet said it had reviewed a copy of the draft policy. Its reported schedule starts at 1%, reaches 5% by 2030 and rises to 20% by 2040. The draft could also penalize airlines and oil marketing companies (OMCs) that do not comply, but the report gave no penalty amounts.

The proposed requirements go beyond India’s published targets, which the Ministry of Petroleum and Natural Gas describes as indicative: 1% in 2027, 2% in 2028 and 5% in 2030 for international flights. The ministry said April 23, 2026, that an amendment dated April 17 brought sustainable aviation fuel blended into aviation fuel under the Aviation Turbine Fuel (ATF) Control Order.

NDTV Profit also reported that domestic and international airlines would need to obtain at least 90% of their annual ATF needs at international airports in India. The reported draft would make airports responsible for SAF storage, handling and distribution, with coordination with OMCs on logistics and blending. NDTV Profit said the uplift threshold is intended to curb economic tankering, in which airlines load extra fuel at one airport to reduce purchases at a more expensive stop.

The proposal is timed against the mandatory phase of the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which begins in 2027. The government says SAF use can lower airlines’ CORSIA offsetting requirements. A parliamentary reply on March 27, 2025, said the National Biofuels Coordination Committee approved the initial indicative targets after considering stakeholder feedback, SAF production capacity under development and projected ATF sales.

On July 29, 2026, the Civil Aviation Ministry said officials had discussed SAF production, certification and distribution readiness with government agencies, airlines, airports and OMCs, and described the policy as nearing completion. Civil Aviation Minister Ram Mohan Naidu said India’s immediate priority was to achieve its 1% SAF blending target cost-effectively while limiting the burden on passengers and airlines. He also said farmers could benefit from the SAF value chain.

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