Policy on sustainable aviation fuel to cut imports soon: Minister

Speaking at the India Sustainable Aviation Fuel Summit-2025 in New Delhi, Naidu said the government’s upcoming SAF policy would be a crucial step towards balancing growth with environmental responsibility. The event is being organised by the Civil Aviation Ministry, in collaboration with FICCI.

The minister highlighted that the transition towards cleaner aviation fuel required greater innovation, investment and global partnerships. “The move from feedstock to fuel will connect farmers with flyers. Even used cooking oil from everyday kitchens could become part of this new green aviation journey,” the minister remarked, underlining the potential of waste-to-fuel technology.

India has set clear blending targets for the use of SAF in jet fuel, 1 % by 2027, 2 % by 2028 and 5 % by 2030. SAF can be used as a drop-in replacement for conventional Aviation Turbine Fuel (ATF), making it an immediately viable option for airlines.

Highlighting the opportunities within the sector, Naidu said private firms must actively participate in the production of SAF alongside public oil companies. With a global requirement of 183 million tonnes of SAF projected by 2040, India’s participation could play a decisive role in shaping the future of sustainable aviation.

The minister pointed out that the country has access to over 750 million tonnes of biomass and about 213 million tonnes of surplus agricultural residue, which can be effectively used as feedstock for fuel production.

Naidu said the adoption of SAF would not only help India cut its crude oil import bill by an estimated USD 5-7 billion annually but could also create more than one million green jobs across the value chain. “The shift will empower farmers, potentially raising their incomes by 10-15 %,” he added.

Currently, the global production of SAF remains limited. However, Naidu expressed confidence that India could manufacture it at competitive prices, thereby positioning itself as a key player in the sustainable aviation market.

India is among the fastest-growing aviation markets in the world, with domestic airlines collectively ordering over 1,700 aircraft. Naidu said that adopting SAF on a large scale would be crucial in ensuring that this rapid expansion does not come at the cost of environmental sustainability.