New Delhi, Oct 24 (Mayank Nigam) The Union Cabinet chaired by Prime Minister Narendra Modi on Thursday approved setting up a venture capital (VC) fund with a corpus of Rs 1,000 crore under the aegis of IN-SPACe to promote startups in the space sector.Briefing media on Cabinet decisions here today, Union Information and Broadcasting (I&B) Minister Ashwini Vaishnaw said that the proposed VC fund will focus on startups with proof of concept and commercialisation potential.”Indicative investment range will be from Rs 10 crore to Rs 60 crore,” the minister said.An official statement said that 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.Vaishnaw said that the government expects a multiplier effect with private fund co-investments. He also said that private investors may also get an opportunity to invest in the fund itself.”Fund will be operated by a professional fund manager. It will drive innovation in satellite tech, launch vehicles, and space applications. It will strengthen India’s global space position and advance space reforms,” he said.
Vaishnaw stated that the Modi government has in the last 10 years transformed the country’s innovation economy and startup economy.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 VC 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,” the statement said.