Union Cabinet Approves Rs 1,000 Crore Venture Capital Fund For Space Startups

(MENAFN- KNN India) New Delhi, Oct 28 (KNN)
In a significant boost for India's burgeoning space industry, the Union Cabinet has approved a Rs 1,000 crore Venture Capital Fund dedicated to fostering the growth of startups in the space sector.

This ambitious initiative aims to support around 40 emerging companies, catalysing advancements in space technology and innovation within the private sector.

Finance Minister Nirmala Sitharaman announced the fund during the Union Budget for 2024-25, underscoring the government's commitment to enhancing domestic capabilities in the space domain.

The fund is expected to play a crucial role in retaining domestic enterprises while providing essential funding for the later stages of development, ensuring that Indian startups can compete on a global scale.

The deployment period for this fund will span five years, with an average annual allocation ranging from Rs 150 crore to Rs 250 crore.

Specifically, in the financial year 2025-26, an estimated Rs 150 crore will be allocated, with a subsequent allocation of Rs 250 crore in the following three years.

The final year of deployment will see an investment of Rs 100 crore, facilitating a steady flow of resources for these nascent companies.

Managed by the Indian National Space Promotion and Authorisation Centre (IN-SPACe), the fund is designed to promote private sector participation in the space industry. Investments will range from Rs 10 crore to Rs 60 crore, tailored to the startup's stage and growth trajectory.

For growth-stage companies, investments may reach up to Rs 30 crore, while late-stage ventures could receive between Rs 30 crore and Rs 60 crore, providing a robust framework for financial support.

This initiative not only aims to bolster the Indian space ecosystem but also aligns with the government's broader strategy of promoting innovation and entrepreneurship in high-tech sectors.

The establishment of this fund is expected to stimulate job creation and enhance technological advancements in areas such as satellite manufacturing, launch services, and space applications.

In addition to the venture capital fund, the Union Cabinet also approved two railway projects worth Rs 6,798 crore.

These projects are set to enhance logistical efficiency and connectivity across eight districts in Andhra Pradesh, Telangana, and Bihar, further underscoring the government's commitment to infrastructure development.

As India looks to position itself as a leader in the global space arena, this venture capital fund represents a pivotal step in nurturing homegrown talent and ensuring the sustained growth of the space sector.

(KNN Bureau)

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