Uttar Pradesh is preparing to take a bold step toward redefining India’s bioenergy future by
unveiling its vision of Sustainable Aviation Fuel Manufacturing Promotion Policy 2025, the first of its kind in the country. The vision of the policy was unveiled by UP Government’s Chief Secretary, Manoj Kumar Singh during a roundtable at Invest UP. During the roundtable, key investors, policy experts, and senior government officials came together to explore SAF manufacturing opportunities, underscoring the state’s intent to position itself as a leading hub for green energy innovation.
The envisioned policy holds the potential to drive meaningful transformation, not only in India’s clean energy trajectory but also in the fortunes of UP’s sugar industry. By enabling the integration of agricultural waste into the SAF value chain, the policy aims to align environmental responsibility with rural economic revival. This initiative aligns with the state’s vision of becoming a $1 trillion economy and a leader in sustainable industrial growth.
From Ethanol to Aviation Fuel: The Next Logical Step
Ethanol and Sustainable Aviation Fuel: Complementary Pillars of Clean Energy
India’s sugar industry has played a central role in driving the ethanol blending programme, enabling the country to make significant progress toward its E20 target. This shift has delivered multiple benefits: a steady revenue stream for sugar mills, reduced sugar surplus, improved payment cycles for farmers, and greater energy security. While the ethanol ecosystem continues to scale and evolve, it is equally important to explore parallel opportunities that can further strengthen the green energy transition and expand value creation for the sugar sector.
One such opportunity lies in Sustainable Aviation Fuel (SAF). With global aviation facing increasing pressure to decarbonise, SAF is emerging as a high-potential, low-emissions alternative to conventional jet fuel. Much like ethanol opened up a second vertical for sugar mills, SAF can serve as a complementary third, unlocking even greater value from existing agricultural and industrial ecosystems while advancing India’s broader clean energy goals.
Policy Provisions with Transformational Potential
The proposed policy outlines an ambitious roadmap for SAF production in Uttar Pradesh, with a strong focus on agri-residues as feedstock. Notably, it includes byproducts from sugarcane processing, such as molasses and bagasse, as viable inputs for SAF, which could be a game-changer for the sugar sector.
To attract investment and spur adoption, the policy proposes a suite of incentives: capital subsidies, interest subventions, stamp duty waivers, and significant support for land acquisition. Developers setting up units in eastern UP and Bundelkhand would be eligible for up to 80% land subsidy, while those in central and western regions could avail 75%. These incentives have already drawn investor interest, with commitments worth over ₹3,000 crore under discussion, an encouraging sign for a policy still in its draft stage.
Opportunities for Sugar Mills and Farmers Alike
The policy’s inclusion of sugar sector residues marks a pivotal moment. It offers mills a chance to diversify revenue streams, strengthen margins, and reduce reliance on sugar prices. More importantly, if SAF production becomes a viable commercial vertical, it could further stabilise mill operations, resulting in more predictable, timely payments to sugarcane farmers.
The ripple effect would be felt across rural Uttar Pradesh. Biorefineries co-located near sugar mills could create skilled and semi-skilled employment and stimulate ancillary industries. For farmers, this represents not just better prices but a more integrated, future-ready agricultural value chain.
Challenges That Need Strategic Attention
Despite its promise, the upcoming policy’s success will depend on overcoming significant challenges. SAF production from lignocellulosic material such as bagasse involves complex biochemical or thermochemical processes that are still capital-intensive and commercially nascent. Moreover, SAF remains considerably costlier than traditional jet fuel, potentially slowing adoption unless supported by long-term financial mechanisms or carbon pricing frameworks.
Logistics present another hurdle. Efficient collection, aggregation, and transport of
biomass, especially from smallholder farms, require infrastructure that does not yet exist at scale. Additionally, for the policy to achieve its intended impact, it must integrate seamlessly with national biofuel mandates, aviation sector regulations, and India’s net-zero commitments.
Collaboration is key
Realising the potential of this upcoming policy will require robust collaboration between
Government, industry, and the farming community. Public-private partnerships can play a crucial role in accelerating infrastructure development, while targeted R&D investments will be essential to reduce the cost and complexity of SAF production. At the same time, farmer outreach—through education, fair pricing models, and consistent engagement—will be key to ensuring reliable, long- term supply of biomass feedstock.
At Triveni Engineering & Industries Ltd., we see this policy as a positive move overall. If implemented effectively, it could give Uttar Pradesh an early advantage in this sector and provide additional momentum to the sugar industry. With a strong presence across UP’s sugar belt and extensive experience in sugar, ethanol, and co-generation, Triveni is uniquely positioned to support the SAF transition. We have state-of-the-art distilleries spread across Muzaffarnagar (MZN) – 2 facilities, Sabitgarh (SBT), Milak Narayanpur (MNP) and Rani Nangal (RNG) in Uttar Pradesh with cumulative distillation capacity of 860 KLPD. These facilities have the capability to produce Ethanol, Extra Neutral Alcohol (ENA), Rectified Spirit (RS) and Denatured Spirit (SDS). The Company utilises a mix of sugarcane-based feedstocks as well as grain.
We have also consistently championed the diversification of the sugar sector into renewable energy solutions. As SAF approaches policy-supported adoption, we at Triveni Engineering are in a strong position to capitalize on emerging trends and drive profitable growth in the future.
Overall, Uttar Pradesh’s SAF policy could be more than a regulatory document; it is a signal of intent. It positions the state, and its sugar sector, at the forefront of India’s next-generation biofuel revolution. By building on the ethanol ecosystem, the policy can help unlock a cleaner, more diversified, and economically resilient energy future.
