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Uttar Pradesh approves SAF manufacturing promotion policy to attract investment and green jobs
At a Cabinet meeting chaired by Chief Minister Yogi Adityanath on October 9, the Uttar Pradesh government approved the Uttar Pradesh Sustainable Aviation Fuel Manufacturing Promotion Policy-2026, aiming to make the state a major SAF production hub. The policy promotes SAF made from agricultural residues, municipal waste and non-edible oilseeds — including rice husk, wheat straw and sugarcane bagasse — and leans on the state's strong sugarcane and ethanol industries to support second-generation biofuel and alcohol-to-jet pathways. Manufacturing units are classified by investment size: large (Rs 200-500 crore), mega (Rs 500-1,500 crore) and ultra-mega (above Rs 1,500 crore). Incentives include stamp duty relief, exemption from land-use conversion charges and development fees, reimbursement of net state GST, interest subsidies, a full electricity-duty exemption for up to 10 years, skill-development subsidies and patent-registration-fee reimbursement. The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) will serve as the nodal agency for approving and disbursing incentives, and the policy stays in force for five years.