In a pioneering move, the Uttar Pradesh government has introduced the Sustainable Aviation Fuel (SAF) Manufacturing Promotion Policy-2025, aiming to transform the state's agricultural residues into bio-jet fuel. This initiative is set to directly benefit approximately 2.5 crore farmers by creating a new market for agricultural waste such as sugarcane bagasse, paddy husk, wheat straw, and surplus grains.

The policy, the first of its kind in India, was presented during a high-level roundtable organized by Invest UP Chief Secretary Manoj Kumar Singh highlighted Uttar Pradesh's robust infrastructure and proactive industrial policies, emphasising the state's potential to become a hub for green fuel production. He stated that the policy not only accelerates the green energy transition but also ensures tangible benefits for farmers.

Under the proposed policy, agricultural residues will be procured directly from local farmers, opening up new revenue streams and raising rural incomes. The policy also outlines various incentives, including capital subsidies, state GST reimbursement, land and developmental fee waivers, and interest subsidies, with incentives varying by region.

The initiative has garnered significant interest from the industry, with over 18 companies, including Greenko, AM Greens, E20 GreenFuels, New Era Cleantech, and the Malbros Group, expressing intent to invest over ₹3,000 crore in the state's bio-jet fuel sector.

With India's largest air, rail, and road infrastructure, Uttar Pradesh offers strong logistics and market connectivity, making it a prime location for SAF production. The policy aligns with global decarbonization goals and is expected to contribute significantly to India's climate objectives while enhancing energy security and creating green employment opportunities.