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Civil aviation ministry releases draft sustainable fuels policy proposing mandatory blending requirements
Originally reported by ET Industry as: Government prepares draft sustainable aviation fuels policy; moots mandatory blending in ATF from 2027
4 Nov 2026, 9:55 pm IST · Xecute.finance News Desk
The crisp read
The civil aviation ministry has published a draft National Policy on Sustainable Aviation Fuels that proposes mandatory blending of domestically produced sustainable aviation fuel with Aviation Turbine Fuel. The draft outlines a requirement for utilizing exclusively indigenously manufactured sustainable aviation fuel starting in the year 2027. This regulatory move aims to decarbonize the aviation sector while building domestic manufacturing capabilities.
Deep dive - the full story
The civil aviation ministry circulated the draft National Policy on Sustainable Aviation Fuels to shape environmental compliance within the aviation industry. The proposed framework mandates the use of sustainable aviation fuel blended with Aviation Turbine Fuel (ATF). A key provision specifies that airlines must utilize exclusively indigenously manufactured sustainable aviation fuel. This policy framework establishes a timeline for green transitions within Indian aviation, setting the implementation of mandatory blending to begin in 2027.
By restricting eligible fuels to domestic production sources, the policy links decarbonization goals with domestic manufacturing growth. Airlines and fuel suppliers must prepare for operational adjustments and supply chain restructuring to meet these regulatory standards. Industry stakeholders should review the draft policy document, assess supply chain readiness for domestic sustainable aviation fuel procurement, and participate in consultation processes.
Aviation companies need to factor future fuel cost adjustments and blending compliance into long-term operational planning. Bottom line: early preparation for upcoming mandatory fuel blending rules protects aviation operators from compliance penalties.
Source: economictimes.indiatimes.com
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