Why in the News?

The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the establishment of a Rs. 1,000 crore Venture Capital Fund aimed at supporting the growth of India’s space sector under IN-SPACe. This initiative seeks to foster innovation, attract investment, and enhance India's position in the global space economy.

Key Features of the Venture Capital Fund

• Fund Allocation: ₹ 1,000 crores over five years, with average yearly deployment between ₹150-250 crore.
• Investment Range: ₹10-60 crore (based on their growth stage).
• Expected Startups to be Supported: 40 startups in the space sector.
• Objectives of the Fund
  • Enhance funding accessibility for startups to stimulate growth and development.
  • Encourage space companies to remain in India and counteract trends of relocation abroad.
  • Drive advancements in space technology and expand the Indian space economy.
  • Generate employment across the space supply chain and contribute to the Atmanirbhar Bharat initiative.

About IN-SPACe

• It was established in June 2020 as a single-window, independent, nodal agency for all space sector activities of private entities.
  • To facilitate private sector participation in the space sector.
• It functions as an autonomous agency under the Department of Space (DOS).
• It plays an important role in boosting the private space sector economy in India.
• It is responsible to promote, enable authorize and supervise various space activities of the NGEs (Non-Governmental Entities).
  • It includes the building of launch vehicles & satellites and providing space-based services; sharing of space infrastructure and premises under the control of DOS/ISRO; and establishment of new space infrastructure and facilities.