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Air India and IndianOil Sign MoU for Supply of Sustainable Aviation Fuel


Gurugram, 19 August 2025: In a landmark move towards green aviation, Air India, a Tata Group company, and Indian Oil Corporation Limited (IOCL) signed a Memorandum of Understanding (MoU) for the supply of Sustainable Aviation Fuel (SAF).

The agreement highlights both organizations’ commitment to adopting low-carbon fuels, supporting global decarbonization goals, and ensuring a sustainable future for air transport in India.

This collaboration comes as part of Air India’s broader strategy to achieve the IATA Net Zero by 2050 target and comply with CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation).

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 & MD, Air India.

AS Sahney, Chairman, IndianOil:
“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 Air India aligns national growth with global climate goals.”

Campbell Wilson, CEO & MD, Air India:
“Through this MoU, Air India is committed to supporting the Government of India’s sustainable aviation initiatives while progressing towards IATA’s Net Zero by 2050 target.”

Air India is also renewing its fleet with 570 new aircraft on order, adopting market-leading flight planning systems, expanding nonstop routes, and implementing green practices like reduced single-use plastics, autonomous-EV towing, and fuel-efficient operations.

For IndianOil, this partnership builds upon its milestone of becoming the first Indian company to receive ISCC CORSIA certification for SAF production at its Panipat Refinery, placing it among global leaders in sustainable fuel production.

Together, Air India and IndianOil are shaping the future of aviation with a focus on sustainability, efficiency, and innovation — ensuring India plays a leadership role in the global clean energy transition.


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