India Plans 5% Sustainable Aviation Fuel Blend for Domestic Flights by 2030

India is poised to mandate a 5% blend of Sustainable Aviation Fuel (SAF) for domestic flights by 2030, with plans to increase this requirement to 15% by 2040. This information comes from a joint report released by Deloitte and the Indian Sugar & Bio-Energy Manufacturers Association (ISMA). The initiative aims to generate a domestic SAF demand of nearly 100 crore litres by 2030 and 600 crore litres by 2040, marking a significant step toward decarbonizing India’s aviation sector.

The report emphasizes India’s robust potential in the SAF market, attributing it to the country’s abundant feedstock supply. Key raw materials such as used cooking oil, agricultural residues, sugarcane, maize, and other biomass sources position India not only to satisfy domestic needs but also to potentially become a significant exporter of SAF. Projections suggest that the country could produce between 2,450 crore to 3,100 crore litres of SAF annually by 2040.

Currently, India has only implemented SAF blending mandates for international flights, which include a target of 1% by 2027, 2% by 2028, and 5% by 2030. To date, no official blending targets exist for domestic flights. Establishing these targets represents a major policy shift intended to reduce emissions in aviation.

In support of this transition, the Indian Oil Corporation (IOC) plans to commence SAF production from used cooking oil at its Panipat refinery, with an expected launch in December 2025. This facility will have an annual production capacity of 35,000 tonnes, utilizing raw materials sourced from prominent hospitality chains such as ITC and Haldiram’s.

Blending SAF with conventional aviation turbine fuel (ATF) can significantly diminish greenhouse gas emissions, potentially reducing them by up to 80% compared to traditional jet fuel. With a strong feedstock base and a rapidly expanding aviation sector, India is well-positioned to become a global leader in the SAF market.

As the country moves towards these ambitious targets, stakeholders across the aviation and energy sectors are keenly observing developments, which could redefine India’s role in the global aviation industry.