SAF 5% by 2030: How India’s Aviation Fuel Supply Chain Will Transform
DGCA's carbon reporting mandate is paired with concrete Sustainable Aviation Fuel (SAF) blending targets: 1% by 2027, 2% by 2028, and 5% by 2030. This will reshape jet fuel supply chains, requiring massive new production, logistics, and feedstock procurement. Indian refineries are gearing up, with Panipat and Mumbai plants close to output, but a nationwide supply network remains a challenge.
Key Takeaways
- DGCA's carbon reporting mandate is paired with concrete Sustainable Aviation Fuel (SAF) blending targets: 1% by 2027, 2% by 2028, and 5% by 2030.
- This will reshape jet fuel supply chains, requiring massive new production, logistics, and feedstock procurement.
- Indian refineries are gearing up, with Panipat and Mumbai plants close to output, but a nationwide supply network remains a challenge.
Mentioned
Key Intelligence
Key Facts
- 1DGCA is likely to mandate carbon emissions reporting for international flights, requiring operators to report at least 90% of their annual emissions from international operations in India.
- 2The mandate is timed to align with the CORSIA mandatory phase starting January 1, 2027, under ICAO.
- 3India has committed to SAF blending targets in aviation turbine fuel (ATF) of 1% by 2027, 2% by 2028, and 5% by 2030 for international flights.
- 4Union Minister Ram Mohan Naidu chaired a stakeholder consultation confirming that Panipat and Mumbai refineries are in final stages of SAF readiness, and that private industry will be brought into manufacturing.
- 5Oil Marketing Companies (OMCs) are collaborating to scale up domestic SAF production, with the draft SAF policy in final stages.
- 6The reporting requirement aims to ensure a level playing field and avoid economic distortion among Indian and foreign carriers operating on international routes.
Ambitious mandate set to transform aviation fuel supply chains across India
Who's Affected
Analysis
Supply chain and logistics managers in aviation now face a new reality: the fuel that powers international flights will no longer be pure Jet A-1. India's commitment to blend 1% SAF by 2027, scaling to 5% by 2030, means a fundamental reconfiguration of fuel procurement, storage, and distribution. With domestic refineries like Panipat and Mumbai nearing readiness, and OMCs involving private players, the supply side is mobilizing—but the logistics of getting SAF to every international airport in India at competitive prices will test the system's capacity.
India's Directorate General of Civil Aviation (DGCA) is poised to introduce a significant regulatory shift for international aviation by mandating carbon emissions reporting from aircraft operators. The move, which emerged from a high-level stakeholder consultation chaired by Union Civil Aviation Minister Ram Mohan Naidu, requires both Indian and foreign carriers to submit data covering at least 90% of their annual emissions from all international flights operating to and from Indian airports. This development aligns with India's preparations for the mandatory phase of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which begins on January 1, 2027, under the International Civil Aviation Organization (ICAO).
Minister Naidu confirmed that India has committed to blending SAF with conventional jet fuel at 1% by 2027, 2% by 2028, and 5% by 2030 for all international flights.
The reporting mandate is designed to create a level playing field and prevent economic distortions among operators, according to sources familiar with the discussions. By capturing 90% of emissions, the DGCA aims to ensure comprehensive coverage that meets global standards while giving airlines sufficient lead time to establish robust monitoring, reporting, and verification (MRV) systems. For many carriers, especially smaller regional players, this will entail significant operational adjustments, including the deployment of digital tools for real-time emissions tracking and the hiring of sustainability officers. The 90% threshold also mirrors similar requirements under CORSIA, where countries are expected to cover substantial portions of international aviation emissions.
Central to the policy thrust is the accelerated adoption of Sustainable Aviation Fuel (SAF). Minister Naidu confirmed that India has committed to blending SAF with conventional jet fuel at 1% by 2027, 2% by 2028, and 5% by 2030 for all international flights. These targets are ambitious, as the global SAF market remains nascent, with production volumes a fraction of conventional jet fuel. India is proactively addressing the supply side: state-owned Oil Marketing Companies (OMCs) are collaborating to scale up domestic manufacturing, with the Panipat and Mumbai refineries reportedly in the final stages of SAF readiness. The government also intends to bring private industry into SAF production, signaling a broader public-private partnership approach. However, challenges persist, including high production costs, feedstock availability, and certification of new fuel pathways. The phased blending targets give industry time to scale, but the 5% target by 2030 will require a massive ramp-up in both capacity and distribution logistics.
What to Watch
From a market perspective, the mandate and SAF targets will have cascading effects across the aviation value chain. Airlines will face increased compliance costs, potentially leading to higher ticket prices on international routes. Fuel suppliers must invest heavily in new infrastructure, and carbon credit markets—central to CORSIA—will see heightened demand as operators seek offsets for emissions beyond the blending thresholds. Indian carriers, which often operate on thin margins, may feel particular pressure compared to well-capitalized global competitors, though the level-playing-field clause aims to mitigate any competitive disadvantage. The reporting mandate also opens the door for future audits and penalties, creating a compliance ecosystem that may require third-party verification and legal oversight.
The policy comes at a time when India is asserting its role in global climate governance, building on its commitments under the Paris Agreement. By aligning with CORSIA and pushing domestic SAF capacity, India is positioning itself as a leader in sustainable aviation in the Global South. However, the success of these measures will hinge on timely execution, sufficient feedstock for SAF, and the ability of Indian carriers to adapt without losing market share. Stakeholders will closely watch the finalization of India's draft SAF policy and any additional incentives or mandates that may emerge as the 2027 deadline approaches.
Cite This Page
"SAF 5% by 2030: How India’s Aviation Fuel Supply Chain Will Transform." Supply Chain Intelligence Brief, August 4, 2026. https://getsupplybrief.com/story/dgca-saf-mandate-supply-chain-impact
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