In this episode of the State of Economy Podcast, businessline's Rishi Ranjan Kala speaks with Prashanth Nutula, Partner, Deloitte India. He discusses the future of SAF(Sustainable Aviation Fuel) in India, its growth prospects, and its role in decarbonising the aviation industry. He highlights Deloitte India's latest report, which suggests that India could produce 8 to 10 million tons of SAF annually by 2039-2040, requiring investments of around $70-85 billion. With demand projected to rise globally, India may even emerge as a leading SAF exporter, surpassing its domestic needs for SAF blending.
The episode starts with Nutula highlighting the significant opportunity for India to meet both its own SAF needs and export substantial quantities, especially given the country's agricultural surplus and its strategic location near key international markets like the Middle East and Singapore.
Nutula addresses the challenges, including early-stage feedstock conversion technology and the logistical issues involved in collecting and storing agricultural residues. Nutula stresses the importance of robust infrastructure, policy support, and incentives for farmers and companies to scale SAF production. He believes that with technological advancements and clear government roadmaps, India can overcome these hurdles and drive growth in the biofuel sector.
The episode also touches on India’s role in meeting global SAF mandates, such as the CORSIA, which will become mandatory for Indian airlines in 2027. With initial blending targets of 1% in 2027 and 2% in 2028, Nutula suggests that a long-term strategy will be needed to scale production, benefiting both the aviation sector and Indian farmers by increasing their income through agricultural residues.
(Host: Rishi Ranjan Kala, Producer: Prethicshaa )
About the State of the Economy podcast
India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders.
