UP approves Sustainable Aviation Fuel Manufacturing Promotion Policy 2026
Yogi Adityanath; Image Credits - The Hindu
The policy aims to promote decarbonisation in the aviation sector, strengthen energy security, encourage private investment and innovation, and create new green employment opportunities in the state.
The Yogi Adityanath government has approved the implementation of the Uttar Pradesh Sustainable Aviation Fuel Manufacturing Promotion Policy 2026, according to an official statement. The decision was taken at a Cabinet meeting chaired by the Chief Minister, the UP government said in a statement.
The approval repprtedly marks a step towards establishing Uttar Pradesh as a major hub for Sustainable Aviation Fuel (SAF) manufacturing. The policy aims to promote decarbonisation in the aviation sector, strengthen energy security, encourage private investment and innovation, and create new green employment opportunities in the state.
It also emphasises developing new value chains in rural areas and diversifying farmers' income by promoting SAF production using locally available feedstock such as agricultural residues, municipal waste and non-edible oilseeds.
The policy classifies SAF manufacturing units into three categories based on capital investment. Units investing INR 200-500 crore will be classified as large, those investing INR 500-1,500 crore as mega, and those with investments exceeding INR 1,500 crore as ultra-mega units.
These units will be eligible for various 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, the statement said.
The policy also provides for customised incentive packages, wherever required, and the establishment of centres of excellence. In cases involving land allotment, front-end land subsidy will also be available.
(Source - PTI)
