National Policy on Sustainable Aviation Fuel (SAF)

The ₹7 Lakh Crore SAF Ambition: Can India Leap Beyond Biofuel Rhetoric?

India's proposed blending target for Sustainable Aviation Fuel (SAF) in Aviation Turbine Fuel (ATF) is alarming in its scale: achieving just 5% blending by 2030 would require a staggering 6 billion litres of ethanol annually. Alongside this, the policy envisions investments of ₹6–7 lakh crore over the next two decades to scale production infrastructure and feedstock cultivation. Yet, fundamental questions on implementation viability, cost parity, and regulatory robustness loom large—as does the absence of a finalized roadmap even as compliance deadlines under ICAO’s CORSIA framework edge closer.

Why India's SAF Move Breaks From Past Biofuel Narratives

Unlike earlier renewable energy pushes—including the National Bio-Energy Mission—India’s SAF policy is intertwined with international compliance mandates. The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) administered by ICAO will require SAF adoption for international airlines starting 2027. This external pressure inserts a sense of urgency absent in domestic-centric biofuel initiatives. Further, the policy's focus on lifecycle assessments (LCAs)—a global benchmark rooted in scientific analysis—is a first for Indian aviation fuels. Comparatively, India trails countries like Brazil and the United States, which already boast robust feedstock-specific LCAs (sugarcane and corn, respectively). The SAF move signifies a departure from tentative experimentation toward obligatory scaling tied to international reputational stakes.

The Institutional Machinery Driving SAF Policy

The formulation of India's National SAF Policy is a cooperative endeavor led by two ministries:

• Ministry of Petroleum and Natural Gas (MoPNG): Tasked with production, feedstock strategies, supply chain development, and certification frameworks. Its Bio-Aviation Turbine Fuel Programme Committee plays a pivotal role.
• Ministry of Civil Aviation (MoCA): Charged with implementation, airline compliance under CORSIA, and ensuring airport infrastructure readiness for SAF blends.

Key initiatives include Indian Oil Corporation’s commitment to produce 35,000 tonnes of SAF annually using used cooking oil from commercial kitchens. On the R&D front, the CSIR–Indian Institute of Petroleum has developed SAF using indigenous feedstocks like jatropha and algae oil, garnering provisional military certification via CEMILAC. Additionally, collaborations with the United States under the Strategic Clean Energy Partnership highlight international knowledge-sharing workshops geared toward scaling SAF technologies.

What the Numbers Reveal

The gap between ambition and realism becomes evident upon closer scrutiny:

While Deloitte estimates India could produce 8–10 million tonnes of SAF annually by FY40, costs remain alarmingly high. SAF currently costs up to thrice the price of conventional ATF—and synthetic variants (“Power-to-Liquid” SAFs) are up to sevenfold costlier. Compare this with Brazil, where sugarcane-extracted ethanol, supported by decades of infrastructure investment, keeps biofuel costs competitive under the RenovaBio programme. SAF reclassification under India’s bioenergy incentives, like the Gobardhan scheme, has not yet been pursued actively, adding to the fiscal strain.

Moreover, the blending targets—1% by 2027, scaling to 5% by 2030—conceal critical constraints in feedstock availability. India’s ethanol capacity, currently geared toward achieving E20 petrol targets, competes directly with SAF blending. Even sugarcane-derived ethanol must navigate both supply deficits and emerging debates around sustainability impacts (water-intensive cultivation). Without diversification to non-edible oils, agricultural residue, or advanced synthetic pathways, feedstock dependence may prove a bottleneck.

The Uncomfortable Questions

The complexities of SAF adoption extend beyond feedstock shortages and pricing. The headline challenge lies in India's regulatory infrastructure. While MoPNG and MoCA’s bifurcated responsibilities create clarity, the absence of a centralized oversight authority risks institutional fractures. Who mediates between the ministries when compliance, infrastructure funding, and industry obligations collide? Add to this the stark reality: ICAO-mandated LCAs for SAF are scientifically rigorous frameworks—India lacks domestic precedents for such standards. Will reliance on foreign partnerships for certification make India vulnerable to import dependencies?

Another blind spot lies in state-specific variation. Agricultural residues critical to SAF production are unevenly distributed across states. Uttar Pradesh, a sugarcane leader, could drive SAF adoption from molasses and bagasse, while non-agrarian states with high aviation demand may lag due to inadequate feedstock channels. Without federal coordination on subsidies and transport logistics, these regional disparities threaten SAF scaling.

International Parallel: Brazil’s Model

Brazil’s ethanol industry, a cornerstone of its biofuels push, offers instructive lessons. The country leveraged decades of targeted legislation—such as mandatory blending mandates introduced in the 1970s—and infrastructure investment to dominate global sugarcane ethanol markets. Its RenovaBio programme, initiated in 2017, incentivizes LCAs to certify carbon savings, fostering a transparent biofuel economy. India, though boasting agricultural scale, lacks equivalent legislative foresight and feedstock prioritization within its SAF blueprint. The alignment gaps are glaring.

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