Indian Oil Corporation Limited and Air India signed a Memorandum of Understanding on Monday for the supply of Sustainable Aviation Fuel (SAF), marking a significant move toward decarbonizing India’s aviation sector.
The agreement was formalized in Gurugram by Shailesh Dhar, Executive Director (Aviation) at IndianOil, and P. Balaji, Group Head of Governance, Regulatory, Compliance and Corporate Affairs at Air India. The signing took place in the presence of A.S. Sahney, Chairman of IndianOil, and Campbell Wilson, CEO of Air India.
The partnership leverages IndianOil’s recent achievement as 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, validates the company’s ability to produce fuel meeting international sustainability standards.
Under the MoU, both companies will collaborate to supply SAF for international flights to meet CORSIA targets. Air India’s participation aligns with its strategy to achieve the International Air Transport Association’s Net Zero by 2050 target through operational efficiency and low-carbon emission initiatives.
The collaboration positions India as a front-runner in sustainable aviation fuel adoption and supports the government’s sustainable development initiatives in the aviation sector. The partnership aims to establish a reliable and transparent fuel supply chain to support both organizations’ environmental objectives.
The shares of Indian Oil Corporation Limited ended today on the NSE at ₹142.03 up by ₹1.72 or 1.23 per cent.