Green Skies Ahead: Yogi Adityanath Cabinet Approves 'UP Sustainable Aviation Fuel Policy-2026
In a visionary push toward green energy and industrial modernization, the Uttar Pradesh government under the leadership of Chief Minister Yogi Adityanath has officially approved the "Uttar Pradesh Sustainable Aviation Fuel Manufacturing Promotion Policy-2026." Cleared during a crucial cabinet meeting at Lok Bhavan in Lucknow on Friday, October 9, 2026, this landmark policy is designed to transform the state into India's premier manufacturing powerhouse for Sustainable Aviation Fuel (SAF).
Driving Aviation Decarbonization and Rural Prosperity
The newly enacted policy is engineered to achieve multiple strategic milestones, encompassing environmental sustainability, energy security, and regional economic upliftment:
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Decarbonizing Aviation: The policy aligns with global efforts to slash carbon emissions in the civil aviation sector while fostering cutting-edge private sector innovation.
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Diversifying Farmers' Income: By utilizing abundant local agricultural residues—such as rice husk, wheat straw, and sugarcane bagasse—the state aims to create sustainable rural value chains. Uttar Pradesh's undisputed leadership in sugarcane and ethanol production provides an ideal foundation for second-generation biofuels and alcohol-to-jet (ATJ) technologies.
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Green Employment: The initiative is projected to unlock thousands of sustainable green jobs across manufacturing, supply chain logistics, and agricultural waste management.
Lucrative Incentives for Large, Mega, and Ultra Mega Units
To attract substantial capital inflows, the SAF policy classifies manufacturing facilities into three distinct tiers based on financial commitment:
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Large Units: Capital investments ranging between ₹200 crore and ₹500 crore.
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Mega Units: Investments spanning ₹500 crore to ₹1,500 crore.
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Ultra Mega Units: Massive industrial projects exceeding ₹1,500 crore in capital investment.
To fast-track industrial growth, these units will receive an attractive basket of fiscal benefits, including stamp duty exemptions or reimbursements, 100% electricity duty exemptions for 10 years, land use change fee waivers, net SGST reimbursements, interest subsidies, skill development grants, and patent registration cost waivers. Additionally, customized incentive packages, front-end land subsidies, and dedicated Centers of Excellence will be established to cement Uttar Pradesh's leadership in the sustainable energy landscape.
