Sources said that this move is aimed at ensuring a level playing field and avoiding economic distortion among operators.
This comes amid India’s preparations to meet global sustainability requirements under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
Also read: Naidu reviews India’s preparedness for SAF and CORSIA implementation
Last week, Union Civil Aviation Minister Ram Mohan Naidu chaired a high-level stakeholder consultation on Sustainable Aviation Fuel (SAF).
“We had a very important stakeholder consultation on sustainable aviation fuel… India has agreed to the CORSIA mandate of 1% SAF blending in the ATF for international flights by 2027, 2% by 2028 and 5% by 2030. The discussion that we had was how prepared we are to achieve that 1% SAF blending. Our OMCs are all coming together with the best of the processes to manufacture and produce SAF in the country itself. The Panipat Refinery and the Mumbai Refinery are already at the final stages of getting SAF done. We also want to bring private industry into manufacturing SAF,” the Minister said.Oil Marketing Companies (OMCs) are collaborating to scale up domestic SAF production. Refineries at Panipat and Mumbai are in advanced stages of readiness, with the government also seeking greater private sector participation in manufacturing.
The consultation reviewed progress on SAF supply chains, production timelines, certification, accounting and reporting frameworks aligned with ICAO/CORSIA requirements and the development of a national SAF registry. Officials from the Ministries of Civil Aviation, Petroleum & Natural Gas, and Environment, Forest and Climate Change, along with DGCA, Bureau of Indian Standards, Bureau of Energy Efficiency, airlines, airport operators and OMCs participated.
India’s draft SAF policy is in its final stages. The government has emphasised achieving the initial 1 per cent blending target in a cost-effective manner while minimising the burden on passengers and airlines.CORSIA’s mandatory phase begins on 1 January 2027. The proposed emissions reporting requirement and domestic SAF push form part of India’s broader strategy to ensure compliance, support the growth of its aviation sector, and contribute to global decarbonisation efforts.