The introduction of Sustainable Aviation Fuel (SAF) blending mandates for domestic flights in India is likely to take place only after 2027, according to government sources. This decision aligns with the global timeline set by the International Civil Aviation Organization (ICAO), which will introduce mandatory carbon offsetting requirements for international flights under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) starting in 2027. While the government had previously considered rolling out SAF blending mandates for domestic flights as early as 2025, several factors—primarily the high cost of SAF production and concerns over fuel price escalation—have led to a cautious approach.
Understanding the Importance of SAF
SAF, a biofuel produced from sustainable feedstocks, is considered one of the most promising solutions to reduce aviation’s carbon footprint. It has similar chemistry to conventional aviation turbine fuel (ATF) and can be blended seamlessly with jet fuel, making it compatible with existing aircraft engines. Global aviation leaders, including Airbus, have already demonstrated successful flights using SAF blends, which can replace up to 50% of conventional fuel without compromising performance.
India has also made strides in SAF development, with several successful test flights already conducted by domestic airlines. However, the challenge lies in scaling up production and making SAF cost-effective for widespread use. Given that fuel costs account for around 40% of Indian airlines’ operating expenses, any significant cost escalation could impact airfares in a price-sensitive market like India.
Strategic Delay Until 2027
The delay in SAF mandates for domestic flights until after 2027 aligns with the global CORSIA timeline, giving the industry more time to scale production and reduce costs. According to sources, this delay will allow airlines to first gain experience using SAF on international routes before applying the same to domestic operations. The global adoption of SAF, coupled with advances in production technology, is expected to reduce costs over the coming years, making it more feasible for Indian airlines to embrace SAF without causing sharp increases in ticket prices.
India’s largest fuel producer, Indian Oil Corporation (IOC), is already working in collaboration with Praj Industries and LanzaJet to set up SAF production units using innovative pathways such as the alcohol-to-jet fuel (ATJ) process. Other initiatives by Mangalore Refinery and Petrochemicals, which focuses on using non-edible oils and used cooking oil for SAF production, highlight India’s commitment to sustainable aviation. These projects are key steps toward building domestic SAF capacity ahead of the 2027 deadline.
The Global Context: CORSIA and Beyond
From 2027, CORSIA will require airlines to offset carbon emissions that exceed 2020 levels, making SAF blending an essential tool in the global decarbonization strategy. While India has opted out of the voluntary phases of CORSIA, it will need to comply with the mandatory requirements starting in 2027. The initial target for SAF blending, set by the National Biofuel Coordination Committee, is 1% for international flights in 2027, increasing to 2% in 2028.
This cautious yet strategic approach ensures that India’s aviation sector remains competitive, while still contributing to global climate goals. The government is expected to introduce support mechanisms, possibly in the form of incentives or subsidies, to help airlines and SAF producers transition smoothly when the mandates come into effect.
VURDHAAN’s Role in the Aviation Sustainability Landscape
As the aviation industry moves toward sustainable practices, VURDHAAN is actively supporting stakeholders in navigating the complexities of SAF adoption, regulatory compliance, and carbon offsetting strategies. Our expertise spans global initiatives like CORSIA, EU ETS, and ReFuelEU, ensuring that airlines are well-prepared for the upcoming SAF mandates.
Through our Support, Educate, and Implement methodology, VURDHAAN works with airlines, fuel producers, and government bodies to create sustainable solutions that align with both economic and environmental objectives. By guiding organizations through the SAF adoption process, we help them minimize costs while maximizing their contribution to global climate targets.
Building a Sustainable Future for Aviation
The delay in domestic SAF blending mandates until after 2027 gives India’s aviation industry the time and opportunity to prepare for a more sustainable future. The continued development of SAF production facilities, coupled with global cost reductions, will make SAF a more viable option for airlines both domestically and internationally.
As the world moves closer to the goal of net-zero emissions by 2050, SAF will play an increasingly important role in decarbonizing the aviation sector. India’s approach—focusing first on international compliance before introducing domestic mandates—ensures that the country remains competitive while contributing to the global fight against climate change.
At VURDHAAN, we are committed to helping the aviation sector achieve these sustainability goals. By leveraging our expertise, we enable airlines to take proactive steps toward adopting SAF and meeting their regulatory obligations, all while remaining financially viable in a challenging market.