MARKET STRUCTURE · INDIA

Govt to soon come out with sustainable aviation fuel policy, says Rammohan Naidu

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The Indian government is set to announce a Sustainable Aviation Fuel (SAF) policy aimed at reducing crude oil imports and boosting farmers' incomes. This initiative is crucial for balancing aviation growth with sustainability goals.
Govt to soon come out with sustainable aviation fuel policy, says Rammohan Naidu
Why it matters
The Indian government is preparing to unveil a Sustainable Aviation Fuel (SAF) policy that aims to significantly reduce crude oil imports while boosting farmers' incomes and creating green jobs. Civil Aviation Minister K. Rammohan Naidu announced this initiative during the India Sustainable Aviation Fuel Summit 2025, emphasizing the need for innovation, investment, and international collaboration in SAF production. The policy sets ambitious blending targets of 1% SAF in jet fuel by 2027, 2% by 2028, and 5% by 2030. With over 750 million tonnes of available biomass and 213 million tonnes of surplus agricultural residue, India is well-positioned to produce SAF competitively. The initiative is expected to raise farmers' incomes by 10-15% and reduce crude oil import bills by USD 5-7 billion annually, while also creating more than 1 million green jobs along the SAF value chain. This policy is a critical step in balancing the rapid growth of India's aviation sector with sustainability objectives.
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Business & Markets Aerospace & Defense Climate & Environment Sustainability

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