The Union Cabinet has approved a Venture Capital Fund worth Rs 1,000 crore to support space sector startups. This fund is expected to aid about 40 startups, fostering the growth of India’s private space sector and advancing space technology.
Boosting Private Space Sector
This initiative aims to accelerate the growth of domestic space companies and enhance technological advancements. The fund was first announced by Finance Minister Nirmala Sitharaman during the Union Budget 2024-25, with the goal of retaining homegrown companies and facilitating additional funding for later-stage development.
Fund Allocation Over Five Years
The fund will be deployed over a five-year period, with an annual investment range of Rs 150-250 crore. In the financial year 2025-26, Rs 150 crore will be allocated, followed by Rs 250 crore in each of the next three years. The final year will see an allocation of Rs 100 crore.
Managed by IN-SPACe
The Indian National Space Promotion and Authorisation Centre (IN-SPACe), an agency promoting private sector participation in the space industry, will manage the fund. IN-SPACe, launched in 2022 by Prime Minister Narendra Modi, operates from Bhopal and Ahmedabad.
Investment Range for Startups
The investment range will vary based on the company’s growth stage. For growth-stage startups, the funding will range from Rs 10-30 crore, while late-stage companies can receive between Rs 30-60 crore.
Railway Projects Worth Rs 6,798 Crore Approved
In addition to the space fund, the Cabinet approved two railway projects totaling Rs 6,798 crore. Spread across Andhra Pradesh, Telangana, and Bihar, these projects aim to improve logistical efficiency, enhance connectivity, and contribute to sustainable development by reducing greenhouse gas emissions. Completion is expected within five years.
