Govt Proposes Mandatory SAF Blending For Airlines From Jan 2027 In Draft Policy; Target 20% By 2040

Airlines and oil marketing companies (OMCs) could also face penalties for failing to comply with the proposed SAF blending requirements, according to the draft seen by NDTV Profit.

Advertisement
Read Time: 2 mins
Quick Read
Summary is AI-generated, newsroom-reviewed
  • The Centre proposes mandatory 1% SAF blending for international flights from 2027
  • SAF blending to increase to 5% by 2030 and 20% by 2040 in a two-phase plan
  • Airlines and oil companies may face penalties for non-compliance with SAF rules
Did our AI summary help?
Let us know.

The Centre has proposed mandatory blending of sustainable aviation fuel (SAF) for international flights from January 2027. The requirement is reportedly set to increase in phases to 20% by 2040. The Ministry of Civil Aviation (MoCA) has circulated the 'Draft SAF Policy, 2026', which proposes an initial blending mandate of 1% for international flights.

The proposal, a copy of which has been reviewed by NDTV Profit, outlines a two-phase roadmap, with SAF blending targeted to incraese to 5% by 2030 under the first phase, and then to 20% by 2040 under the second phase.

Advertisement

Airlines and oil marketing companies (OMCs) could also face penalties for failing to comply with the proposed SAF blending requirements, according to the draft seen by NDTV Profit.

90% ATF Uplift Requirement

The SAF draft has also proposed that domestic and international airlines uplift 'at least 90% of their annual aviation turbine fuel' (ATF) requirements from international airports in India.

Advertisement

This is aimed at preventing what the Centre describes as 'economic tankering'. This involves airlines carrying additional fuel from another airport to avoid purchasing fuel at a destination where it is more expensive, ultimately affecting fuel demand and airport operations.

The airports will also have separate responsibilities under the proposed policy. They will be required to ensure that infra for SAF storage, handling and distribution is in order.

Advertisement

The draft copy also proposes that airports coordinate with oil marketing companies to facilitate the logistics and blending operations needed to supply the required SAF.

Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.


Loading...