Centre’s nod to Rs 1000-cr VC fund to propel space start-ups

New Delhi: In a bid to drive private investments in the space sector, the government approved setting up a Rs 1,000 crore venture capital for space start-ups on Thursday, a move welcomed by the industry as a game changer. The fund will function under the aegis of the Indian National Space Promotion and Authorization Centre (IN-SPACe) and will be operated along with Indian Space Research Organisation, Information and Broadcasting Minister Ashwini Vaishnaw told reporters here. The fund, approved by the Union Cabinet at a meeting chaired by Prime Minister Narendra Modi, will invest in 30-35 space start-ups in two tranches – the first of Rs 5-10 crore followed by Rs 10-60 crore at a later stage.

The Venture Capital Fund for space sector start-ups was announced by Finance Minister Nirmala Sitharaman in the Union Budget presented after the NDA government led by Modi assumed office for the third consecutive term.

The fund will focus on start-ups with proof of concept and commercialisation potential and is expected to drive innovation in satellite technology, launch vehicles and space applications, Vaishnaw said.