The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved setting up of Rs.1000 crore Venture Capital Fund dedicated to space sector, under aegis of IN-SPACe.

Financial implications:

The deployment period of the proposed Rs.1,000 crore VC fund is planned to be up to five years from the actual date of start of the fund operations. The average deployment amount could be Rs.150-250 crore per year, depending on the investment opportunities and fund requirements. The proposed break-up financial year wise is as below:

S.No.

 

Financial Year

 

Estimate (In Rs.Crores)

 

I

 

2025-26

 

150.00

 

2

 

2026-27

 

250.00

 

3

 

2027-28

 

250.00

 

4

 

2028-29

 

250.00

 

5

 

2029-30

 

100,00

 

 

 

Total Envelope (VC)

 

1000.00

 

The indicative range of investment is proposed to be Rs.10-Rs.60 Crore, contingent upon the stage of the company, its growth trajectory, and its potential impact on national space capabilities. Indicative Equity Investment Range could be:

• Growth Stage: Rs.10 Crore – Rs.30 Crore

• Late Growth Stage: Rs.30 Crore – Rs.60 Crore

Based on the above investment range, the fund is expected to support approximately 40 startups.

Details:

The Fund is strategically designed to advance India's space sector, aligning with national priorities and fostering innovation and economic growth through the following key initiatives:

a. Capital Infusion

b. Retaining Companies in India

c. Growing Space Economy

d. Accelerating Space Technology Development

e. Boosting Globa! Competitiveness

f. Supporting Atmanirbhar Bharat

g. Creating a Vibrant Innovation Ecosystem

h. Driving Economic Growth and Job Creation

i. Ensuring Long-Term Sustainability

a. Capital Infusion

b. Retaining Companies in India

c. Growing Space Economy

d. Accelerating Space Technology Development

e. Boosting Globa! Competitiveness

f. Supporting Atmanirbhar Bharat

g. Creating a Vibrant Innovation Ecosystem

h. Driving Economic Growth and Job Creation

i. Ensuring Long-Term Sustainability

By addressing these points, the fund aims to strategically position India as one of the leading space economies.

Benefits:

  1. Capital infusion to create a multiplier effect by attracting additional funding for later-stage development, thereby instilling confidence in private investors.
  2. Retention of space companies domiciled within India & countering the trend of Indian companies domiciling abroad.
  3. Accelerate private space industry’s growth to meet the goal of a five-fold expansion of the Indian Space Economy in next ten years.
  4. Drive advancements in space technology and strengthening India’s leadership through private sector participation.
  5. Boost global competitiveness.
  6. Supporting Atmanirbhar Bharat.

Impact, including employment generation potential:

The proposed fund is expected to boost employment in the Indian space sector by supporting startups across the entire space supply chain—upstream, midstream, and downstream. It will help businesses scale, invest in R&D, and expand their workforce. Each investment could generate hundreds of direct jobs in fields like engineering, software development, data analysis, and manufacturing, along with thousands of indirect jobs in supply chains, logistics, and professional services. By fostering a strong startup ecosystem, the fund will not only create jobs but also develop a skilled workforce, driving innovation and enhancing India's global competitiveness in the space market.

Background:

The Government of India, as part of its 2020 space sector reforms, established IN-SPACe to promote and oversee private sector participation in space activities. IN-SPACe has proposed a Rs.1000 crore Venture Capital Fund to support the growth of India's space, economy, currently valued at S8.4 billion, with a target to reach $44 billion by 2033. The fund aims to address the critical need for risk capital, as traditional lenders are hesitant to fund startups in this high-tech sector. With nearly 250 space startups emerging across the value chain, timely financial support is crucial to ensure their growth and prevent talent loss overseas. The proposed government-backed fund will boost investor confidence, attract private capital, and signal the government's commitment to advancing space reforms. It will serve as an Alternative investment Fund under SEBI regulations, providing early-stage equity to startups and enabling them to scale for further private equity investments.

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PM to visit Tamil Nadu and Puducherry on 1st March
February 27, 2026
PM to inaugurate, dedicate to the Nation and lay the foundation stone of various development projects worth over Rs. 2,700 crore in Puducherry
Projects aimed at strengthening infrastructure, urban services, industrial development, education, healthcare and sustainable growth in Puducherry
PM to inaugurate, dedicate to nation and lay the foundation stone and inaugurate infrastructure projects worth over Rs. 4,400 crore in Madurai
PM to lay the foundation stone for four-laning of Marakkanam–Puducherry Section of NH-332A and the Paramakudi–Ramanathapuram Section of NH-87
PM to inaugurate 8 redeveloped railway stations in Tamil Nadu and dedicate to the nation Chennai Beach–Chennai Egmore 4th Line
PM to perform darshan and pooja at Arulmigu Subramaniyaswamy Temple at Tirupparankundram

Prime Minister Shri Narendra Modi will visit Tamil Nadu and Puducherry on 1st March 2026. After his visit to Rajasthan and Gujarat, Prime Minister will reach Chennai on 28th February night at around 9 PM.

On 1st March, at around 11:45 AM, Prime Minister will inaugurate, dedicate to the Nation and lay the foundation stone of various development projects worth over Rs. 2,700 crore in Puducherry. He will also address the gathering on the occasion.

Thereafter, he will travel to Madurai where, at around 3 PM, he will inaugurate, dedicate to the nation and lay the foundation stone of infrastructure projects worth over Rs. 4,400 crore. He will also address the gathering on the occasion. At around 4 PM, Prime Minister will perform darshan and pooja at Arulmigu Subramaniyaswamy Temple, Tirupparankundram in Madurai.

PM in Puducherry

Prime Minister will inaugurate, dedicate to the Nation and lay the foundation stone of multiple projects aimed at strengthening infrastructure, urban services, industrial development, education, healthcare and sustainable growth in Puducherry.

Prime Minister will inaugurate several key initiatives including the launch of e-Buses under the PM e-Bus Seva Initiative, the Integrated Command and Control Centre under the Smart City Mission, tenements for Economically Weaker Sections under City Investments to Innovate, Integrate and Sustain (CITIIS) initiative, and important sewerage and water supply sector projects of the Government of Puducherry. He will also inaugurate the Composite Engineering Block- Dr. APJ Abdul Kalam Block and Ganga Hostel of National Institute of Technology, Karaikal; the modernization of the Regional Cancer Centre at JIPMER; and new annexe buildings, lecture halls and hostels of Pondicherry University, further strengthening higher education and healthcare infrastructure in the region.

Prime Minister will dedicate to the nation the 750-acre Karasur-Sedarapet Industrial Estate, which will house a Pharma Park, Textile Park, IT Park, state-of-the-art research and development centre of IIT Madras and advanced healthcare facilities of JIPMER, thereby providing a major boost to industrial growth and employment generation in the region.

Prime Minister will lay the foundation stone of water supply projects to improve drinking water systems and ensure clean and safe water for residents of Puducherry region. He will also lay the foundation stone for construction of 41 rural roads under the Pradhan Mantri Gram Sadak Yojana (PMGSY), development of Heritage Town in Puducherry, mangrove restoration under the MISHTI (Mangrove Initiative for Shoreline Habitats & Tangible Incomes) scheme, projects in water supply and sanitation sectors, and power sector projects under the Revamped Distribution Sector Scheme (RDSS), among others.

Prime Minister will also lay the foundation stone of various projects covering major sectors like urban roads, drainage networks, public buildings, student hostels and sport facilities under the Special Assistance to States for Capital Investment (SASCI) scheme. The Government of India has approved inclusion of the Puducherry under SASCI scheme which was originally limited to States alone, allowing for capital asset creation works to be taken up for improving infrastructure and common utilities meant for people’s use.

PM in Madurai

Prime Minister will inaugurate, dedicate to the nation and lay the foundation stone and inaugurate infrastructure projects worth over Rs. 4,400 crore in Madurai, aimed at enhancing connectivity, improving mobility and accelerating regional economic development. He will also address the gathering on the occasion.

Prime Minister will lay the foundation stone for four-laning of Marakkanam–Puducherry Section of NH-332A and the Paramakudi–Ramanathapuram Section of NH-87. The four-laning of the Marakkanam–Puducherry section will help reduce traffic congestion in urban areas of Puducherry, reduce travel time by nearly 50%, from one hour to about 30 minutes. The project will provide seamless connectivity among key National Highways and State Highways, enhance access to prominent destinations such as Mamallapuram (Mahabalipuram), Kalpakkam Atomic Power Station and Auroville, strengthen connectivity between coastal villages and Viluppuram district headquarters, and boost tourism and economic activity in the region.

The four-laning of the Paramakudi–Ramanathapuram Section of NH-87 will provide faster access to major religious destinations including Madurai, Rameswaram and Dhanushkodi. The project will reduce travel time by around 40%, from one hour to approximately 35 minutes. It will strengthen multi-modal connectivity by linking major railway stations at Madurai and Rameswaram, airports at Madurai and INS Parundu, and non-major ports at Pamban and Rameswaram. Aligned with the principles of PM Gati Shakti, the corridor will integrate key economic nodes including fishing clusters, a Special Economic Zone, a Mega Food Park and a textile cluster, thereby catalysing trade, industry and socio-economic development across the region.

Prime Minister will inaugurate and dedicate to the Nation rail infrastructure projects aimed at enhancing passenger convenience, improving operational efficiency and strengthening rail-based connectivity in the State.

Prime Minister will inaugurate 8 redeveloped railway stations under the Amrit Bharat Station Scheme. These redeveloped railway stations are Morappur, Bommidi, Srivilliputtur, Sholavandan, Manaparai, Pollachi Junction, Karaikkudi Junction, Thiruvarur Junction in Tamil Nadu. These stations have been upgraded with modern passenger-centric amenities while incorporating local architectural elements and cultural aesthetics, including improved accessibility, enhanced station buildings, modern waiting halls, lifts and escalators, upgraded platforms and Divyangjan-friendly facilities.

Prime Minister will also dedicate to the Nation the Chennai Beach-Chennai Egmore 4th Line, a rail line that will significantly enhance operational efficiency in the Chennai suburban rail network by facilitating additional passenger and freight train services and benefiting lakhs of daily commuters including office-goers, IT professionals, students and traders.

To further strengthen broadcasting services in Tamil Nadu, Prime Minister will inaugurate three new Akashvani FM relay transmitters at Kumbakonam, Yercaud and Vellore. These transmitters will expand regional coverage, ensure uninterrupted FM broadcasting and enhance access to public broadcasting services across multiple districts of the State.