Cabinet Approves Rs 1,000 Cr VC Fund To Boost Space Startups
The deployment period for this fund will span five years, with an average annual allocation ranging from Rs 150 to Rs 250 crore, according to media reports
The Union Cabinet has given the green light to a Rs 1,000 crore Venture Capital Fund aimed at fostering the growth of space sector startups in India, with the goal of supporting around 40 emerging companies. This initiative is anticipated to catalyze advancements in space technology within the private sector.
The fund was announced by Finance Minister Nirmala Sitharaman during the Union Budget for 2024-25, and it is expected to help retain domestic space enterprises while facilitating additional funding for later-stage development. The deployment period for this fund will span five years, with an average annual allocation ranging from Rs 150 to Rs 250 crore.
In the financial year 2025-26, an estimated Rs 150 crore will be allocated to this project, followed by Rs 250 crore in the subsequent three years, and Rs 100 crore in the final year.
Managed by the Indian National Space Promotion and Authorisation Centre (IN-SPACe), which promotes private sector participation in the space industry, the fund's investment range will be between Rs 10 crore and Rs 60 crore, depending on 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 and Rs 60 crore.
Additionally, during the cabinet meeting, the approval of two railway projects worth Rs 6,798 crore was announced, aimed at enhancing logistical efficiency and connectivity across eight districts in Andhra Pradesh, Telangana, and Bihar.
