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Cabinet approves amendment in the Foreign Direct Investment (FDI) policy on Space Sector

Published By : Admin | February 21, 2024 | 23:06 IST
The FDI policy amendment has been carried out to realize the vision of an Atmanirbhar Bharat as laid down by PM Shri Narendra Modi
Now, the Space sector has been liberalized for foreign direct investment in prescribed sub-sectors/activities
The FDI policy reform will enhance Ease of Doing Business in the country, leading to greater FDI inflows and thereby contributing to growth of investment, income and employment

The Union Cabinet chaired by Prime Minister Shri Narendra Modi approved the amendment in Foreign Direct Investment (FDI) policy on space sector. Now, the satellites sub-sector has been divided into three different activities with defined limits for foreign investment in each such sector.

The Indian Space Policy 2023 was notified as an overarching, composite and dynamic framework to implement the vision for unlocking India’s potential in Space sector through enhanced private participation. The said policy aims to augment space capabilities; develop a flourishing commercial presence in space; use space as a driver of technology development and derived benefits in allied areas; pursue international relations and create an ecosystem for effective implementation of space applications among all stakeholders.

As per the existing FDI policy, FDI is permitted in establishment and operation of Satellites through the Government approval route only. In line with the vision and strategy under the Indian Space Policy 2023, the Union Cabinet has eased the FDI policy on Space sector by prescribing liberalized FDI thresholds for various sub-sectors/activities.

Department of Space consulted with internal stakeholders like IN-SPACe, ISRO and NSIL as well as several industrial stakeholders. NGEs have developed capabilities and expertise in the areas of satellites and launch vehicles. With increased investment, they would be able to achieve sophistication of products, global scale of operations and enhanced share of global space economy.

The proposed reforms seek to liberalize the FDI policy provisions in space sector by prescribing liberalized entry route and providing clarity for FDI in Satellites, Launch Vehicles and associated systems or subsystems, Creation of Spaceports for launching and receiving Spacecraft and manufacturing of space related components and systems.

Benefits:

Under the amended FDI policy, 100% FDI is allowed in space sector. The liberalized entry routes under the amended policy are aimed to attract potential investors to invest in Indian companies in space.

The entry route for the various activities under the amended policy are as follows:

  1. Upto 74% under Automatic route: Satellites-Manufacturing & Operation, Satellite Data Products and Ground Segment & User Segment. Beyond 74% these activities are under government route.
  2. Upto 49% under Automatic route: Launch Vehicles and associated systems or subsystems, Creation of Spaceports for launching and receiving Spacecraft. Beyond 49% these activities are under government route.
  3. Upto 100% under Automatic route: Manufacturing of components and systems/ sub-systems for satellites, ground segment and user segment.

This increased private sector participation would help to generate employment, enable modern technology absorption and make the sector self-reliant. It is expected to integrate Indian companies into global value chains. With this, companies will be able to set up their manufacturing facilities within the country duly encouraging 'Make In India (MII)' and 'Atmanirbhar Bharat' initiatives of the Government.

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Bharatiya Antariksh Station (BAS) Our own Space Station for Scientific research to be established with the launch of its first module in 2028
September 18, 2024
Cabinet approved Gaganyaan Follow-on Missions and building of Bharatiya Antariksh Station: Gaganyaan – Indian Human Spaceflight Programme revised to include building of first unit of BAS and related missions
Human space flight program to continue with more missions to space station and beyond

The union cabinet chaired by the Prime Minister Shri Narendra Modi has approved the building of first unit of the Bharatiya Antariksh Station by extending the scope of Gaganyaan program. Approval by the cabinet is given for development of first module of Bharatiya Antariksh Station (BAS-1) and undertake missions to demonstrate and validate various technologies for building and operating BAS. To revise the scope & funding of the Gaganyaan Programme to include new developments for BAS & precursor missions, and additional requirements to meet the ongoing Gaganyaan Programme.

Revision in Gaganyaan Programme to include the scope of development and precursor missions for BAS, and factoring one additional uncrewed mission and additional hardware requirement for the developments of ongoing Gaganyaan Programme. Now the human spaceflight program of technology development and demonstration is through eight missions to be completed by December 2028 by launching first unit of BAS-1.

The Gaganyaan Programme approved in December 2018 envisages undertaking the human spaceflight to Low Earth Orbit (LEO) and to lay the foundation of technologies needed for an Indian human space exploration programme in the long run. The vision for space in the Amrit kaal envisages including other things, creation of an operational Bharatiya Antariksh Station by 2035 and Indian Crewed Lunar Mission by 2040. All leading space faring nations are making considerable efforts & investments to develop & operationalize capabilities that are required for long duration human space missions and further exploration to Moon and beyond.

Gaganyaan Programme will be a national effort led by ISRO in collaboration with Industry, Academia and other National agencies as stake holders. The programme will be implemented through the established project management mechanism within ISRO. The target is to develop and demonstrate critical technologies for long duration human space missions. To achieve this goal, ISRO will undertake four missions under ongoing Gaganyaan Programme by 2026 and development of first module of BAS & four missions for demonstration & validation of various technologies for BAS by December, 2028.

The nation will acquire essential technological capabilities for human space missions to Low Earth Orbit. A national space-based facility such as the Bharatiya Antariksh Station will boost microgravity based scientific research & technology development activities. This will lead to technological spin-offs and encourage innovations in key areas of research and development. Enhanced industrial participation and economic activity in human space programme will result in increased employment generation, especially in niche high technology areas in space and allied sectors.

With a net additional funding of ₹11170 Crore in the already approved programme, the total funding for Gaganyaan Programme with the revised scope has been enhanced to ₹20193 Crore.

This programme will provide a unique opportunity, especially for the youth of the country to take up careers in the field of science and technology as well as pursue opportunities in microgravity based scientific research & technology development activities. The resulting innovations and technological spin-offs will be benefitting the society at large.