Uttar Pradesh aims to become leading hub for SAF manufacturing in India
Lucknow: The UP government is set to launch a five-year policy promoting Sustainable Aviation Fuel (SAF) to curb aviation emissions and boost green energy. The draft offers fiscal incentives, including land subsidies up to 80% in eastern UP. It also supports R&D and aims to build a raw material supply chain, creating jobs and enhancing energy self-reliance.
Lucknow: The Uttar Pradesh government is preparing to introduce a policy to promote the production of Sustainable Aviation Fuel (SAF), a cleaner alternative to traditional jet fuel. The move is part of a broader effort to reduce pollution in the aviation sector and strengthen the state’s position in the emerging green energy market.
A draft of the policy, set to remain in effect for five years from the date of its enactment, is now open for comments and suggestions. “We want Uttar Pradesh to become a major centre for SAF production in India. This policy is designed to improve energy self-reliance, help cut down emissions from air travel, and create new jobs in environmentally friendly industries,” said a senior government official, reported The Times of India.
The official explained that Invest UP would act as the nodal agency to approve projects and release financial support under this policy.
According to the draft, the policy also aims to support research and development in SAF technology. It includes plans to create jobs in both cities and villages by building a supply chain for raw materials like biomass, used cooking oil, and municipal waste. The policy aligns with India’s larger climate goals and its SAF blending targets.
To meet its objectives, the state government plans to offer a range of fiscal and non-fiscal incentives to interested investors. The draft policy defines large and mega SAF units based on their minimum capital investment. Units with an investment ranging from Rs 50 crore to Rs 199 crore will be classified as large, while those investing Rs 200 crore or more will be categorized as mega.
The incentive framework also outlines the eligibility criteria for the fiscal benefits that the state government will provide. These benefits include a 50% front-end land subsidy for units established in Gautam Budh Nagar and Ghaziabad, 75% for those in other western and central UP districts, and 80% for units in eastern UP and the Bundelkhand region.
The policy also encourages the adoption of quality and sustainability standards for feedstock to ensure the fuel meets market expectations.
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Source : Chinimandi
