The Centre will soon release a draft policy on Sustainable Aviation Fuel (SAF) for industry consultation, Union Civil Aviation Minister Ram Mohan Naidu said, reports New Delhi's Financial Express.

Mr Naidu said the ministry is working on a "strong and robust" SAF policy and will engage stakeholders before its launch. SAF refers to renewable or waste-derived aviation fuel that meets sustainability criteria.

The minister urged private players to join oil companies in SAF production. Global demand is projected to reach 183 million tonnes by 2040.

India targets one per cent SAF blending in jet fuel by 2027, two per cent by 2028 and five per cent by 2030. The aviation market, currently the fifth-largest globally, is expected to become the third-largest by 2030, with domestic carriers ordering over 1,700 aircraft.

Mr Naidu highlighted India's potential with 750 million tonnes of biomass and 213 million tonnes of surplus agricultural residue. SAF production could raise farmers' incomes by 10-15 per cent, cut crude oil imports by US$5-7 billion annually and create over one million green jobs.

A FICCI-KPMG report said India has the raw materials to scale SAF, including 680 million tonnes of agricultural residue, 3.4 million tonnes of used cooking oil and ethanol capacity exceeding 1,800 crore litres. SAF can reduce lifecycle emissions by up to 80 per cent.

Airbus India chief Jurgen Westermeier suggested integrating corporate spending on voluntary SAF programs into the CSR framework, noting it would represent a direct investment in climate change mitigation.