Uttar Pradesh Cabinet Approves SAF Policy-2026 to Attract Investment and Create Green Jobs
Why It MattersThe policy signals Indian state governments actively courting SAF manufacturing investment through tiered incentives, potentially expanding feedstock-based SAF supply chains in South Asia.
The Uttar Pradesh Cabinet, chaired by Chief Minister Yogi Adityanath, has approved the SAF Policy-2026, aimed at promoting sustainable aviation fuel production, attracting private investment, and creating green employment in the state.
The policy promotes SAF production using locally available feedstock including agricultural residues such as rice husk, wheat straw and sugarcane bagasse, municipal waste, and non-edible oilseeds, supporting rural value chains and farmer income diversification. The state's position in sugarcane production and ethanol manufacturing is cited as a foundation for second-generation biofuels and Alcohol-to-Jet SAF technologies, with production methods including pyrolysis and gasification.
The policy classifies SAF manufacturing units into three categories based on capital investment: large units investing ₹200 crore to ₹500 crore, mega units investing ₹500 crore to ₹1,500 crore, and ultra-mega units exceeding ₹1,500 crore. Eligible units will receive incentives including exemption or reimbursement of stamp duty, exemption from land-use conversion charges and development fees, reimbursement of net SGST, interest subsidy, 100% exemption from electricity duty for up to 10 years, skill development subsidy, and reimbursement of patent registration fees, along with customised incentive packages, centres of excellence, and front-end land subsidy where land allotment is involved.
Applications will be assessed by an evaluation committee constituted under the Director of UPNEDA. The policy will remain in force for five years from the date of implementation or until a new policy comes into effect, whichever is earlier.
