Uttar Pradesh ⁤Launches sustainable Aviation Fuel​ Policy to Boost Green Aviation

‍ Updated June 06, 2025

Uttar Pradesh‍ is pioneering a new era for India’s aviation ‍sector with it’s Sustainable Aviation ‍Fuel (SAF) Manufacturing Promotion Policy-2025, the⁤ first of⁢ its kind nationwide. The initiative focuses on converting agricultural residue, such as sugarcane ⁢bagasse, rice husk, and ‌wheat​ straw, into sustainable aviation fuel, creating new income opportunities for ⁤farmers and advancing the nation’s sustainable⁣ aviation fuel goals.

The state anticipates attracting ₹3,000 crore in investments through this policy.Reportedly, over​ 18 companies have already expressed⁢ interest in establishing SAF production facilities in‍ Uttar ‍Pradesh. The policy offers various incentives‍ to encourage industry participation, including capital subsidies, state GST reimbursements, land waivers, and interest subsidies.

Beyond the⁢ economic advantages, ​this policy supports India’s commitment to‌ reducing carbon⁢ emissions and enhancing energy security.With its robust logistics infrastructure, including five international airports, Uttar ‍Pradesh aims to become a central hub for sustainable aviation fuel production.

India’s approach to sustainable aviation fuel ‍differs from that of the EU and the UK. While India utilizes⁣ agricultural⁢ waste for cost-effectiveness ‍and farmer benefits, the EU and UK have implemented blending ⁤mandates, which have ⁢led to higher costs due to supply chain challenges.

The International Air transport Association (IATA) has cautioned that global sustainable aviation fuel production remains insufficient, covering only a fraction of airline fuel needs. India ‌accounts for approximately ‍2.5% of global aviation fuel demand,​ indicating ​notable potential for sustainable aviation fuel expansion.

While ⁤India‍ prioritizes bio-based sustainable ‌aviation⁢ fuel, global efforts also explore hydrogen fuel and electric aircraft, even though these technologies are‍ still in their early stages. India’s policy is incentive-driven, aiming to foster a domestic sustainable aviation fuel industry before implementing mandates. In contrast, Europe’s strict blending rules have faced adoption challenges due to​ high costs. Global aviation organizations like IATA advocate for ⁣policy reforms to improve sustainable aviation fuel accessibility.

what’s next

Uttar Pradesh’s initiative could serve as a model for other states in ‌India, potentially leading to a nationwide shift towards sustainable aviation fuel and a ⁤greener aviation sector. The success‍ of this policy will depend on effective implementation and ⁢continued investment in⁣ research and development.