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·         Collaboration builds upon IndianOil’s recent milestone of becoming the first Indian company to receive ISCC CORSIA certification for SAF production at its Panipat Refinery 

Bengaluru, 19 August 2025: Air India and Indian Oil Corporation Limited (IOCL) today signed a Memorandum of Understanding (MoU) for the supply of Sustainable Aviation Fuel (SAF), marking a major step towards a greener future for Indian aviation. Under the MoU, Air India, a Tata Group company, and IOCL have outlined their shared commitment to promote the adoption of low-carbon fuels in aviation, support global decarbonization goals, and contribute to the transition towards more sustainable air transport operations.

As part of its broader strategy to achieve the IATA Net Zero by 2050 target and comply with CORSIA obligations, Air India is actively pursuing initiatives in operational efficiency, low-carbon emissions, and now, SAF. This MoU marks a significant step in expanding its green aviation portfolio.

The MoU was signed by Shailesh Dhar, Executive Director (Aviation), IndianOil and P Balaji, Group Head – GRC and Corporate Affairs, Air India, in the presence of AS Sahney, Chairman, IndianOil and Campbell Wilson, CEO & Managing Director, Air India, and other officials.

AS Sahney, Chairman, IndianOil said: “The signing of this MoU with Air India represents a strategic step in India’s transition to sustainable aviation. With our ISCC-CORSIA-certified SAF from Panipat, IndianOil is ready to provide a sustainable fuel solution that will help decarbonize air travel. Partnering with India’s flagship carrier, we are aligning national growth with global climate goals and setting a benchmark for the industry.”

Campbell Wilson, CEO & Managing Director, Air India said: “Through this MoU with IndianOil, Air India is committed to support the Government of India’s initiatives to promote sustainable development in the aviation sector and to further its own sustainability goals to achieve the IATA Net Zero by 2050 target.”

Air India’s fleet renewal plan, with 570 new aircraft on order, will enable the airline to operate one of the lowest carbon emitting fleets in the world and its plans to establish more non-stop city-pairs will result in less emissive flights and itineraries. Air India has also adopted market-leading flight planning and optimisation systems, including upgrading its route planning software and coordination with air traffic management, and has entered into an MOU with India’s Council of Scientific and Industrial Research and the Indian Institute of Petroleum to collaborate on the research, development and deployment of SAF.

Over the last few years, Air India has adopted several green practices, including reducing single-use plastics and using lighter material for cutlery and dishes, and is optimising processes such as more frequent engine and airframe washes, implementing single-engine taxiing and autonomous-EV towing to save jet fuel.

These efforts align with India’s broader push for green aviation, which includes India’s target of 5% SAF blending by 2030 and the development of SAF supply chains across the country.

This collaboration builds upon IndianOil’s recent milestone of becoming the first Indian company to receive ISCC CORSIA certification for SAF production at its Panipat Refinery. The certification, granted under ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), establishes IndianOil’s capability to produce SAF that meets the most stringent international sustainability and lifecycle carbon emission standards.

By integrating certified green fuels into commercial operations, IndianOil and Air India are together reinforcing India’s position as a front-runner in sustainable aviation and energy transition.

Through this MoU, IOCL and Air India aim to collaborate on the supply of SAF to meet CORSIA targets for international flights, ensuring a reliable, transparent, and sustainable fuel supply to support both companies’ environmental goals.

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“The collaboration shall open new pathways for faster expansion of the renewable energy portfolio of both companies,” NHPC said.

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In a detailed two-page letter, IOOA questioned the transparency of decision-making processes and expressed alarm over ongoing manpower reductions in critical areas like Pipelines and R&D, warning that such moves could undermine the organization’s technical expertise and safety standards. The association urged immediate engagement to ensure that strategic restructuring does not compromise the core strengths and national role of IOCL.

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The MOU was signed by Rajat Gupta, Executive Director (SBD&C) from NHPC and Pravin Dongre, Executive Director (SD) from IOCL in the presence of R.K. Chaudhary, CMD, R.P. Goyal, Director (Finance), Suprakash Adhikari, Director (Technical) and GM (SBD&C) from NHPC and Suman Kumar, Director (P&BD) & Manoj Nanda, CGM (SD) from IOCL.

The MOU aims to foster long term collaboration between NHPC and IOCL for exploring the opportunities in the sector and development of Pumped Storage, Hydroelectric and other Renewable Energy projects in the country and abroad. The collaboration shall open new pathways for faster expansion of Renewable Energy portfolio of both the companies.

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These stations will be established in important cities like Panjim, Mapusa, Margao, and Vasco, according to Chief Minister Pramod Sawant. IOCL will be in charge of installing and maintaining advanced battery swapping stations and EV charging stations under the initiative.

Furthermore, the business will supply the state with free basic facilities like restrooms, locker rooms, and gas stations.

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During the meeting, key areas for collaboration were identified, including the potential JV for the conversion of Ammonium Nitrate to explosives, a crucial step in the mining and construction industries. This partnership will also look into the manufacturing of advanced lithium-ion batteries, aimed at supporting India’s transition to electric vehicles and renewable energy solutions.

Another significant topic discussed was enhancing the operations of the Hindustan Urvarak & Rasayan Limited (HURL) joint venture. With the expertise of both CIL and IOCL, the collaboration aims to boost production capabilities and improve the efficiency of HURL’s operations, particularly in the fertilizer sector, which remains vital to India’s agricultural landscape.

The proposed JV marks a further step in the long-term growth strategy of both companies, solidifying their roles in India’s energy, infrastructure, and manufacturing sectors.

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