Draft SAF policy proposes 90% local fuel uplift for international airlines

5 NOVEMBER 2026

The Centre’s draft National Sustainable Aviation Fuel (SAF) policy proposes that airlines buy at least 90% of their annual fuel requirements for international flights departing India at domestic airports, to ensure demand certainty for SAF.
The proposal seeks to discourage “economic tankering”, or carrying additional fuel purchased elsewhere to reduce refuelling at Indian airports.
The obligation would apply to Indian and foreign airlines operating scheduled international services.
The 90% requirement relates to aviation fuel uplift, rather than the proportion of SAF blended into conventional jet fuel.
Additionally, airlines would submit independently verified annual reports on actual fuel uplift at each airport to the Directorate General of Civil Aviation (DGCA).

Sustainable Aviation Fuel (SAF) blending

Tthe draft proposes mandatory SAF blending shares for international aviation falling within the scope of the Carbon Offsetting and Reduction Scheme for International Aviation.
The proposed trajectory is 1% in 2027, 2% in 2028, 3% in 2029 and 5% in 2030.
Subsequent targets, including 10% in 2035 and 20% in 2040, are indicative and would be subject to further decisions.

Sustainable Aviation Fuel (SAF) support

The Centre is considering funding and tax support for early SAF deployment, including viability gap funding for initial production plants, green financing and long-term offtake agreements, alongside possible GST relief, import duty waivers, income-tax holidays and accelerated depreciation.
However, the measures remain proposals.