Government prepares draft sustainable aviation fuels policy; moots mandatory blending in ATF from 2027
Economic Times 1 hr ago·4 Nov 2026, 4:25 pm
The civil aviation ministry has proposed a new policy to promote sustainable aviation fuels, or SAF. The draft mandates that SAF must be blended with Aviation Turbine Fuel, or ATF, starting in 2027. A key requirement is that these fuels must be manufactured domestically within India, aiming to boost local production and reduce reliance on imports.
This policy shift is significant for the broader market as it creates a clear demand signal for domestic manufacturers. It supports the government's push for self-reliance in critical sectors and could boost the manufacturing capabilities of companies involved in green energy and aviation infrastructure. Investors should monitor the timeline for finalizing the policy and the progress of local SAF production facilities.
Moving forward, investors should watch for the finalization of the policy details and the allocation of incentives for domestic SAF producers. The success of this initiative will depend on the ability of local industries to scale up production to meet the mandated blending targets.
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