India’s transition towards cleaner transport fuels gathered pace in 2025, with biofuels and sustainable aviation fuel (SAF) emerging as key pillars of the country’s energy and climate strategy, according to the Year End Review 2025 released by the Ministry of Petroleum & Natural Gas.
The review highlighted significant progress under the SATAT (Sustainable Alternative Towards Affordable Transportation) initiative, with more than 130 compressed biogas (CBG) plants commissioned across the country as of November 1. The ministry held that several additional projects are at various stages of construction, indicating a steady scaling up of the bio-CNG ecosystem.
A major policy milestone during the year was the notification of mandatory CBG blending obligations in the CNG and PNG segments from FY2025–26, backed by financial support for pipeline connectivity and biomass aggregation—measures expected to accelerate offtake and improve project viability.
Ethanol blending in petrol continued its upward trajectory, reaching an average of 19.24% in the Ethanol Supply Year (ESY) 2024–25. The government noted that the programme has delivered cumulative foreign exchange savings exceeding Rs 1.55 lakh crore, while also contributing to a substantial reduction in carbon emissions. Progress under the Pradhan Mantri JI-VAN Yojana was also underscored, with second-generation ethanol plants at Panipat and Numaligarh becoming operational, strengthening India’s push towards advanced biofuels made from agricultural residues and non-food feedstocks.
The aviation sector marked an important shift towards decarbonisation through SAF. The government announced indicative SAF blending targets of 1%, 2% and 5% in aviation turbine fuel (ATF) for international flights from 2027, 2028 and 2030, respectively. During the year, Indian Oil Corporation Limited became the first Indian entity to secure ISCC CORSIA certification for SAF production at its Panipat refinery and entered into a memorandum of understanding with Air India for future SAF supplies.
Biodiesel blending also expanded in 2025, supported by increased procurement and diversification of feedstocks, reinforcing the role of biofuels in reducing emissions across road and aviation transport while strengthening domestic energy security.
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