Bharat Petroleum Corp. Ltd and Akasa Air have signed a strategic Memorandum of Understanding to adopt sustainable aviation fuel (SAF) at select airports across India. According to a press release from the company, both firms are exploring the long-term supply readiness of SAF and will implement a phased increase of SAF blending in their operations. The partnership aims to ramp up the availability and offtake of SAF at select airports in India, marking a significant step in the country's biofuel expansion. The MoU was signed on Wednesday by Sujit Kumar, Chief General Manager (Marketing-Aviation), BPCL, and Ankur Goel, Chief Financial Officer, Akasa Air, in the presence of senior officials from both organisations. Subhankar Sen, Director (Marketing), BPCL, emphasized that the company is committed to providing comprehensive fuel solutions to the aviation sector through reliable supply, operational excellence and innovation, while Sanjeev Kumar, Business Head – Aviation, BPCL, highlighted their long-standing and valued relationship with Akasa Air and their active work to develop the Sustainable Aviation Fuel ecosystem in India. Ankur Goel, Chief Financial Officer, Akasa Air, stated that sustainability has remained one of the airline's core values since its launch and has guided investments in modern aircraft, technology and operational efficiency, with the partnership strengthening the airline's preparedness for SAF use while supporting the growth of the supply ecosystem.
As part of the agreement, BPCL and Akasa Air will establish a framework for the supply and offtake of SAF-blended Aviation Turbine Fuel (ATF) at selected airports across the country. The partnership will focus on improving long-term supply readiness by sharing indicative fuel demand forecasts, supporting production planning, and progressively increasing SAF blending as India's domestic production ecosystem develops. Beyond fuel supply, the collaboration will focus on knowledge sharing, policy advocacy, and engagement with government bodies and industry stakeholders to help accelerate the growth of India's SAF ecosystem. The companies will work together to build a long-term framework for supplying SAF-blended ATF and will share demand forecasts, support production planning and gradually increase SAF blending as the domestic supply chain develops. The partnership is aligned with India's clean energy goals and global aviation sustainability frameworks, including the International Civil Aviation Organisation's Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
The Centre amended the ATF Control Order (2001) in April 2026, allowing for the adoption of SAF-blended aviation turbine fuel (ATF). As reported by NDTV Profit, the government announced indicative blending targets of SAF in ATF for international flights: 1% in 2027, 2% in 2028, and 5% in 2030. These targets align with the goal set by the International Civil Aviation Organization, the UN civil aviation safety watchdog. The Ministry of Petroleum and Natural Gas amended the Aviation Turbine Fuel (Regulation of Marketing) Order, 2001 through a notification on April 17, 2026, to allow the blending of ethanol in jet fuel. Under the revised regulations, ATF is defined as a mixture of hydrocarbons that may also include synthesised components in accordance with Indian fuel standards, creating the regulatory framework for SAF adoption in the country. The government expects wider use of SAF to reduce India's dependence on imported crude oil while helping lower greenhouse gas emissions from the aviation sector. Before the regulatory amendment, airlines primarily operated on conventional jet fuel without renewable blending. However, industry representatives have maintained that SAF remains significantly more expensive than conventional jet fuel, leading to calls for targeted policy support to encourage its adoption.
BPCL highlighted its ongoing investment in clean energy, including the development of a 61 KTPA Sustainable Aviation Fuel facility at its Mumbai Refinery. The company stated that the project will help improve the availability of SAF in India as demand grows. Under the agreement, BPCL and Akasa Air will work together to build a long-term framework for supplying SAF-blended ATF. The companies will also share demand forecasts, support production planning and gradually increase SAF blending as the domestic supply chain develops. Beyond fuel supply, the partnership includes knowledge sharing, engagement with government agencies and industry stakeholders, and support for policies that encourage the use of sustainable aviation fuel. As per BPCL, the company is actively pursuing multiple green energy initiatives and is committed to supporting the aviation industry's decarbonization journey. The company also highlighted its digital aviation platform, Be-Winged, which has been developed to improve operational efficiency and customer experience across its aviation fuel business.
Akasa Air has embedded sustainability in its operations since inception, operating an all-Boeing 737 MAX fleet, powered by CFM LEAP-1B engines, which consume about 20 per cent less fuel and produce lower emissions than the aircraft they replace. The airline has also deployed the SkyBreathe fuel management platform developed by OpenAirlines to improve fuel efficiency and reduce carbon emissions across its network. In another sustainability initiative, Akasa Air was the first Indian carrier to voluntarily discontinue ceremonial water-cannon salutes for inaugural flights, helping conserve more than 5.3 lakh litres of water so far. As per Akasa Air, sustainability has been embedded in its operations since inception and the collaboration with BPCL will strengthen the airline's operational readiness for SAF use while supporting the growth of the supply ecosystem in the country.
The partnership supports India's broader decarbonisation goals and is aligned with international aviation sustainability standards, including the International Civil Aviation Organization's (ICAO) CORSIA framework. The move is likely intended to increase the usage of Sustainable Aviation Fuel (SAF) in an effort to help bring down India's dependence on imported crude oil. As reported by NDTV Profit, ATF is now defined as 'mix of hydrocarbons that can also include synthesised components, as per Indian standards' following the regulatory update. The collaboration aligns with Akasa Air's sustainability strategy and will help strengthen its readiness to use Sustainable Aviation Fuel in future operations. Ankur Goel, Chief Financial Officer, Akasa Air, emphasized that sustainability is one of their core values and that the collaboration builds on their foundation by strengthening operational readiness for Sustainable Aviation Fuel. The partnership aims to strengthen India's emerging SAF ecosystem and supports the country's broader decarbonisation goals while aligning with global aviation sustainability initiatives. However, industry stakeholders have pointed out that SAF remains considerably more expensive than conventional aviation turbine fuel, leading to calls for targeted policy support and incentives to accelerate commercial adoption. Rohit Kumar of the Sustainable Aviation Fuel (SAF) Association India has suggested that phased implementation of blending mandates would allow airlines and fuel producers to gradually scale up production and consumption while helping build a robust domestic SAF ecosystem.
