Government incentives will be critical in accelerating the adoption of Sustainable Aviation Fuel (SAF) In India, as airlines navigate cost pressures and prepare for a phased blending mandate through 2030, according to the SAF Association. “The SAF transition is no longer a question of if, but how fast we can scale,” said Rohit Kumar, Secretary General, SAF Association.
“In the initial phase, targeted incentives for airlines will be essential to bridge the cost gap with conventional ATF, ensuring that sustainability does not translate into higher fares.”
India’s SAF Gazette notification is being seen as a historic policy milestone, laying out a clear roadmap, 1% blending by 2027, 2% by 2028, and 5% by 2030, providing long-awaited clarity to producers, airlines, and refiners. However, the cost differential between SAF and conventional fuel remains a key challenge.
Industry stakeholders call for tax incentives
Industry stakeholders are calling for measures such as tax incentives, viability gap funding, carbon credit mechanisms, and blending support to make early adoption commercially viable. “Globally, SAF markets have scaled on the back of strong policy support. India has taken a decisive first step with the mandate now the focus must shift to enabling market adoption,” Kumar added.
India is well-positioned to scale SAF production, particularly through the Alcohol-to-Jet (ATJ) pathway, leveraging its strong ethanol ecosystem and abundant biomass resources. SAF produced under standards such as ASTM D7566 is a “drop-in” fuel and can reduce lifecycle emissions by 60–80%, making it a key decarbonisation lever for aviation.
Industry momentum is already building, with players like Indian Oil Corporation advancing production plans in talks with multiple Indian carriers like Akasa and a few others.
As the sector evolves, the SAF Association has been actively working to catalyse policy dialogue, industry collaboration, and market development in the SAF ecosystem. Through stakeholder consultations, policy representations to key ministries, and industry knowledge platforms, the Association is supporting the transition from policy signals to on-ground implementation.
“India has all the building blocks to emerge as a global SAF hub, with the right policy support and industry alignment, we can unlock both decarbonisation and economic opportunity at scale.” Kumar said.
According to aviation analyst Mark Martin of Martin Consulting, ethanol blending in aviation fuel remains a contentious area globally, with concerns around engine reliability and operational efficiency. “There is limited research on the long-term cost and performance benefits of ethanol blending in ATF. Unlike SAF, ethanol is not a conventional aviation biofuel pathway, and blending it with Jet A1 has not demonstrated meaningful gains in costs or efficiency while potentially posing engine-related risks,” he said.