India proposes 1% SAF blending mandate, starting in January

By Priya Raman

India’s Ministry of Civil Aviation has circulated a draft requiring 1% sustainable aviation fuel (SAF) blending on international flights from January. The proposal remains a draft-stage policy rather than an enacted rule; the reported material does not identify the January year or set out a penalty schedule, verification method or approved supply pathway. For now, the percentage belongs to the proposal, not to an operating requirement.

A two-phase target without delivery data

The draft sets three proposed milestones:

• 1% SAF blending for international flights from January.
• 5% SAF blending by 2030 in phase one.
• 20% SAF blending by 2040 in phase two.

The source provides no fuel-production volumes, contracts or supplier records against which to test those percentages. The proposed trajectory therefore remains a policy target rather than a demonstrated delivery schedule.

Penalties remain undefined

The draft says airlines and oil marketing companies (OMCs) could face penalties for failing to comply with the proposed blending requirements. It does not specify penalty amounts, timing, exemptions or whether enforcement begins with the initial January requirement. The financial consequence remains open-ended in the reported proposal rather than a calculable operating cost.

Existing aircraft can use blended fuel

SAF is a liquid fuel that can be blended with conventional aviation turbine fuel (ATF) without requiring new aircraft or engines. That separates the technical question from fleet economics: the policy, as described, does not require fleet modifications. The source identifies no aircraft or engine certification milestone because the proposal relies on blending compatibility rather than new equipment.

The source says SAF can potentially reduce carbon emissions by up to 80%. That figure is a potential maximum, not a guaranteed saving, and the report names no supplier, production pathway, baseline or verification method. No Indian production project or delivery record is cited, so the proposal does not establish what reduction an airline could claim.

Airlines in talks with the government stressed: “unless the production cost of sustainable aviation fuel is brought down, it will be difficult to reach emission targets.” The warning separates technical compatibility from commercial feasibility. The reported policy includes no price cap, supply schedule or cost estimate, leaving the effect on fares, fuel budgets and capacity unresolved.

Refuelling rules would alter fuel economics

The draft would require domestic and international airlines to uplift nearly 90% of their annual ATF needs from international airports in India. That obligation covers both carrier categories, even though the initial 1% blending proposal is confined to international flights.

The stated purpose is to prevent what the Centre describes as “economic tankering” (carrying additional fuel from another airport to avoid purchasing fuel at a more expensive destination). The draft says the practice affects fuel demand and airport operations.

For airlines, the rule narrows the scope to exploit fuel-price differences across the network and concentrates procurement at Indian international airports. For those airports and OMCs, it could shift fuel sales and operating demand. The source does not quantify either change or identify affected routes, so no specific schedule or capacity adjustment can be inferred.

ICAO goal provides the policy context

In October 2022, member states of the International Civil Aviation Organization (ICAO) agreed to a long-term aspirational goal (LTAG) of net-zero carbon dioxide emissions from aviation by 2050. SAF has long been seen within the industry as the fastest route to reducing those emissions.

The ICAO agreement provides policy context, not enforcement terms for India’s draft. Any binding requirements would come from the ministry’s domestic proposal if adopted.

What does this change for airlines and airports?

For airlines, the immediate task is compliance planning: source SAF, meet a blend share on international flights and concentrate nearly 90% of annual ATF purchases at Indian international airports. The draft does not specify how compliance would be demonstrated, leaving verification procedures and associated record-keeping unresolved.

For airports and OMCs, fuel sales and operating demand could shift toward Indian international airports. The source does not quantify the effect on ticket prices, capacity, route schedules or SAF availability, so those outcomes cannot be treated as committed.

The next test will be publication of a final policy with a dated January commencement, defined penalties and a credible path through 1%, 5% and 20%. Until those details are published, India has a proposed compliance framework rather than an operating mandate.