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HYDERABAD, JANUARY 29, 2026: In a significant move towards decarbonising Indian aviation, state-owned energy giant Indian Oil Corporation Ltd. (IOCL) has signed a Letter of Intent (LOI) with Akasa Air to explore the future supply of Sustainable Aviation Fuel (SAF). The agreement was formalised at the ongoing Wings India 2026 airshow in Hyderabad.
Key Details of the Collaboration:
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Objective: To establish a framework for collaboration to support Akasa Air's sustainability goals through the potential supply of SAF.
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Focus Areas: The companies will work towards evaluating potential SAF supply volumes, delivery locations, timelines, approved sustainable feedstocks, and certified production pathways.
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Strategic Importance: SAF is recognized globally as a critical lever for reducing the lifecycle greenhouse gas emissions of air travel and is pivotal for the aviation sector's journey towards net-zero emissions.
Leadership Insight:
Shailesh Dhar, Country Head (Aviation Business) at Indian Oil Corporation Ltd., stated, "This LOI reflects our commitment to scaling low-carbon fuels and supporting our customers in their energy transition. By leveraging our expertise across fuel production, supply, and logistics, we aim to play a meaningful role in enabling an early transition to the usage of SAF."
Context & Industry Impact:
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IOCL's Green Push: This initiative aligns with IOCL's broader strategy to diversify its energy portfolio and lead in India's green fuel transition. The company has been actively investing in biofuels and hydrogen alongside its conventional energy business.
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Akasa Air's Sustainability Drive: For Akasa Air, India's fastest-growing airline, this partnership is a strategic step to integrate environmental stewardship into its growth story, potentially future-proofing its operations against evolving regulatory and consumer expectations for sustainable travel.
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National & Global Trend: The collaboration underscores the increasing momentum for SAF in India, following global aviation trends. Such partnerships between fuel producers and airlines are essential to create a viable ecosystem for alternative fuels, which are currently more expensive and in limited supply globally.
This partnership marks a concrete step in translating sustainability commitments into actionable roadmaps within the Indian aviation and energy sectors.