India is strengthening its private space ecosystem by supporting the development of advanced rocket propulsion technology. Bengaluru-based startup Astrobase Space Technologies has received funding support under IN-SPACe’s Technology Adoption Fund to build an indigenous methane-liquid oxygen (Methalox) rocket engine.
The company is developing an 80-tonne-thrust full-flow staged combustion engine powered by liquid oxygen and methane, one of the most advanced rocket engine architectures currently used in the global space industry. The engine is already undergoing hot-fire testing at the company’s propulsion facility in Andhra Pradesh.
Methane-based rocket engines are increasingly becoming the preferred choice for reusable launch vehicles because they burn cleaner, offer higher efficiency and simplify engine reuse compared with traditional propulsion systems. Major global space companies have also adopted methane-powered engines for next-generation rockets.
According to IN-SPACe, the funding is aimed at accelerating the development of critical indigenous space technologies and reducing dependence on foreign propulsion systems. The engine is expected to support future medium- and heavy-lift launch vehicles for commercial and strategic missions.
The project highlights India’s growing focus on private-sector participation in space exploration and launch services. In recent years, startups such as Skyroot Aerospace, AgniKul Cosmos and Bellatrix Aerospace have emerged as key players in the country’s rapidly expanding space-tech ecosystem.
Industry observers view the development as a significant milestone in India’s ambition to build next-generation reusable launch systems and strengthen its position in the global commercial space market.
