Govt. alters aviation fuel norms to allow for blending with non-petroleum sources

The Ministry of Petroleum and Natural Gas issued the Aviation Turbine Fuel (Regulation of Marketing) Amendment Order, 2026, dated April 17, 2026, which came ...

What Happened

The Ministry of Petroleum and Natural Gas issued the Aviation Turbine Fuel (Regulation of Marketing) Amendment Order, 2026, dated April 17, 2026, which came into immediate effect — formally legalising the blending of Sustainable Aviation Fuel (SAF) with conventional petroleum-based jet fuel.
The amendment revises the definition of Aviation Turbine Fuel (ATF) from a purely petroleum-derived product to include "synthesised hydrocarbons as specified in IS 17081" — the Bureau of Indian Standards (BIS) specification for synthetic aviation fuels.
Eligible feedstocks for producing these synthesised hydrocarbons include biomass (including agricultural residues like stubble), municipal solid waste (MSW), algae, natural gas, and other non-petroleum sources — not exclusively ethanol.
The amendment aligns India's fuel regulatory framework with global standards and enables participation in international carbon offsetting schemes such as CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation), administered by the International Civil Aviation Organization (ICAO).
India has set a mandatory SAF blending target of 1% by 2027, scaling to 2% by 2028 and 5% by 2030.

Static Topic Bridges

Sustainable Aviation Fuel (SAF): Science and Significance

Sustainable Aviation Fuel is a drop-in alternative to conventional fossil-based jet fuel (kerosene-based ATF) that can be produced from a range of non-petroleum feedstocks. SAF is chemically similar to conventional ATF but has a significantly lower lifecycle carbon footprint — capable of reducing carbon emissions by up to 80% compared to conventional ATF on a full lifecycle basis, depending on feedstock and production pathway. SAF is recognised globally as the single most scalable tool for decarbonising commercial aviation, which accounts for approximately 2.5% of global CO₂ emissions.

SAF production pathways include: Alcohol-to-Jet (ATJ), Fischer-Tropsch (FT) synthesis, Hydroprocessed Esters and Fatty Acids (HEFA), Power-to-Liquid (PtL), and Direct Air Capture (DAC) routes.
India has feedstock potential for producing 19–24 million tonnes of SAF annually — well above the estimated maximum requirement of 8–10 million tonnes at a 50% blend by 2030.
The IS 17081 specification by BIS governs synthetic aviation fuels — its incorporation into the ATF marketing order is the key regulatory move enabling legal SAF blending.
SAF blending roadmap: 1% (2027), 2% (2028), 5% (2030).

Connection to this news: The Amendment Order is the enabling legal instrument — without changing the ATF definition to include IS 17081 synthesised hydrocarbons, SAF blending would have been technically illegal under the existing 2001 marketing order regardless of production capacity.

CORSIA and India's International Aviation Commitments

The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), adopted by ICAO in 2016, is the first global market-based measure for any sector. It requires airlines operating international routes to offset CO₂ emissions above 2019 levels by purchasing carbon credits or using eligible SAF. As Indian carriers increasingly operate international routes and come under CORSIA obligations, domestic SAF availability and legal framework become commercially significant.

ICAO is a UN specialised agency established in 1944 under the Chicago Convention — it governs international civil aviation standards globally.
CORSIA applies to international flights between CORSIA-participating states; India is a participating state.
Airlines can reduce CORSIA offset obligations by using eligible SAF — creating a direct commercial incentive for SAF adoption.
The Directorate General of Civil Aviation (DGCA) is India's national aviation regulatory authority, which implements ICAO standards domestically.

Connection to this news: Legalising SAF blending is not only about domestic emission reduction — it is a prerequisite for Indian carriers to meet their CORSIA obligations using domestically produced SAF rather than purchasing international carbon credits.

Energy Security and Bioenergy in India

India imports approximately 85% of its crude oil requirements, making petroleum dependence a chronic energy security and current account challenge. SAF produced from domestic biomass, agricultural residues, and MSW represents a strategic import substitution opportunity — reducing aviation sector dependence on imported ATF while creating value from waste streams. The National Policy on Biofuels, 2018 (amended in 2022), provides the broader policy framework for biofuel production and blending across fuel types.

The National Policy on Biofuels, 2018, expanded the feedstock list for ethanol production and set targets for blending in petrol (now reaching 20% target) and diesel.
The 2022 amendment to the Biofuel Policy expanded permissible feedstocks to include damaged food grains, sugarcane juice, and cellulosic/lignocellulosic materials.
Stubble burning — a major seasonal air pollution contributor in Punjab, Haryana, and UP — could be partially addressed if agricultural residues are channelled into SAF production rather than burned.
ONGC, Indian Oil Corporation, and HPCL are among PSUs exploring SAF production capacity under government directives.

Connection to this news: The amendment order's explicit reference to biomass, natural gas, and MSW as feedstock sources directly connects SAF policy to India's waste management and agricultural residue utilisation priorities.

Bureau of Indian Standards (BIS) and Technical Specifications

The Bureau of Indian Standards (BIS), established under the BIS Act, 2016, is the national standards body of India operating under the Ministry of Consumer Affairs, Food and Public Distribution. BIS develops Indian Standards (IS) for products, processes, and services. The IS 1571 specification covers conventional aviation turbine fuel; IS 17081 is the newly referenced BIS specification that defines synthetic (including SAF-derived) aviation fuels — its incorporation into the ATF marketing order gives it regulatory force.

BIS Act, 2016, replaced the earlier Bureau of Indian Standards Act, 1986, strengthening product certification and standards enforcement.
IS 17081 aligns India's synthetic fuel specification with international ASTM D7566 and ASTM D1655 standards used globally for SAF.
The Ministry of Petroleum and Natural Gas administers the ATF (Regulation of Marketing) Order, 2001 — the parent instrument now amended.

Connection to this news: By replacing the ATF definition to reference IS 17081, the amendment performs a precise regulatory act — it is technically specific rather than aspirational, creating a legally enforceable basis for SAF blending certification and procurement.

Key Facts & Data

Amendment: Aviation Turbine Fuel (Regulation of Marketing) Amendment Order, 2026 — Ministry of Petroleum and Natural Gas, dated April 17, 2026
Key change: ATF definition now includes "synthesised hydrocarbons as specified in IS 17081" (BIS standard for synthetic aviation fuels)
Parent order: ATF (Regulation of Marketing) Order, 2001
SAF blending targets: 1% by 2027, 2% by 2028, 5% by 2030
Eligible feedstocks: Biomass, agricultural residue (stubble), MSW, algae, natural gas — not exclusively ethanol
India's SAF feedstock potential: 19–24 million tonnes/year production capacity
India's SAF requirement at 50% blend by 2030: 8–10 million tonnes/year
CORSIA: ICAO's global carbon scheme for international aviation — SAF usage reduces airline offset obligations
India's crude oil import dependence: ~85% of total crude requirement
Aviation's global CO₂ share: ~2.5% of global carbon dioxide emissions
National Policy on Biofuels: 2018 (amended 2022) — broader framework for biofuel blending
DGCA: Directorate General of Civil Aviation — India's national aviation regulator implementing ICAO standards