Govt sets up Rs1,000-cr venture fund for space sector projects
25 Oct 2024
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The union cabinet on Thursday approved the setting up of a Rs1,000-crore venture capital fund exclusively for space sector initiatives.
The VC fund will be managed by Indian National Space Promotion and Authorisation Centre (IN-SPACe), the nodal agency for promotion of private sector initiatives in space.
The proposed Rs1,000 crore VC fund will initially be deployed for a period of five years, with average annual funding limit of Rs150-250 crore.
It is estimated that the fund will deploy Rs150 crore at the start of the programme in 2025-25, with Rs250 crore allocation for subsequent years and Rs100 crore for the final year, 2029-30.
The funding requirements are currently estimated to be in the range of Rs10 crore to Rs60 crore, depending on the cost and scope of the project.
Funding will be contingent on the stage of the company, its growth trajectory, and its potential impact on national space capabilities.
The estimated equity investment requirements range from Rs10-30 crore in the early growth phase to Rs30-60 crore in the late growth phase.
The VC fund should be enough to support an average 40 start-ups as per the estimates.
The fund is designed to promote innovation in India's space sector and is aligned with national priorities and the need to secure economic growth.
Accordingly, the fund will be deployed for capital infusion, retaining companies in India, expanding the space economy, accelerating development of space technology, boosting global competitiveness, supporting `Atmanirbhar Bharat’, creating a vibrant innovation ecosystem, driving economic growth and creating jobs while ensuring sustainability.
