India Plans SAF Blending Mandates for International Flights from 2027

India is expected to introduce sustainable aviation fuel (SAF) blending requirements for international flights, targeting 1% from 2027, 2% from 2028 and 5% from 2030. However, the country has yet to finalise a comprehensive SAF policy, while the mandatory phase of the International Civil Aviation Organization’s CORSIA scheme begins in January 2027.

Indian airlines could face annual carbon offset obligations of approximately five million tonnes of CO₂, potentially costing $50 million to $75 million based on carbon credit prices of $10–15 per tonne.

Indian Oil’s Panipat refinery is reportedly prepared to supply 30,000 tonnes of SAF to meet the initial target, using co-processing technology that combines used cooking oil with conventional fuels. India also aims to develop domestic SAF production and become a global export hub.

However, SAF prices remain two to five times higher than conventional aviation fuel. Industry stakeholders are calling for government subsidies, guaranteed offtake agreements and clearer regulations on blending mandates, carbon credits and exports.

Meanwhile, the EU and UK have already introduced SAF blending requirements, while Singapore will implement a 1% target in January 2027.