New Delhi, Nov 4: India has proposed introducing a 1 per cent sustainable aviation fuel (SAF) blending requirement for international flights from January 1, 2027, with the target expected to increase gradually to 20 per cent by 2040, BioEnergy Times reported, citing Zee Business. The proposal is part of the draft National Sustainable Aviation Fuel Policy 2026 released by the Ministry of Civil Aviation.

Source: BioEnergy Times (Zee Business)

Under the proposed roadmap, SAF blending will increase to 2 per cent in 2028, 3 per cent in 2029 and 5 per cent in 2030, BioEnergy Times reported. The targets are proposed to rise further to 6 per cent in 2031, 8 per cent in 2032, 10 per cent in 2035 and 20 per cent by 2040, with the National Council on SAF to decide whether the targets from 2031 onwards should be made mandatory.

Source: BioEnergy Times (Zee Business)

The cost problem

India's draft SAF policy notes the fuel could cost 2–3 times more than conventional jet fuel, Hindustan Times reported via Inshorts. The draft proposes financial incentives including GST exemptions and tax holidays, alongside the Rs 500 crore Innovation Seed Fund, to boost domestic SAF production.

To support domestic production, the draft policy proposes an Innovation Seed Fund of around Rs 500 crore for research, technological development and improvements in SAF manufacturing, BioEnergy Times reported. India aims to produce around 10 million tonnes of SAF annually by 2040, requiring an estimated investment of 70 billion to 85 billion dollars, and the policy also proposes establishing a National SAF Registry under the Directorate General of Civil Aviation (DGCA).

Source: BioEnergy Times (Zee Business)

1%Proposed SAF blend for international flights from January 1, 2027
5%Proposed blend by 2030
20%Proposed blend by 2040
Rs 500 croreProposed Innovation Seed Fund for SAF research and manufacturing

What happens next: the draft policy has been circulated by the Civil Aviation Ministry, and the framework is expected to cover blending obligations and compliance tracking through the proposed DGCA registry as Indian carriers prepare for the global CORSIA emissions scheme's mandatory phase from 2027. Sources: BioEnergy Times, citing Zee Business (November 4, 2026), and Hindustan Times reporting carried by Inshorts (November 5, 2026).