14 Nov 2024        12:31:28 pm

Science

IN–SPACe

Tags : IN–SPACe

Topic: Government initiatives

Why in the news?

• The Union Cabinet, led by Prime Minister Narendra Modi, has approved the establishment of a Rs.1,000 crore Venture Capital (VC) Fund dedicated to supporting India’s space sector. 
• This pioneering initiative, developed under the aegis of IN-SPACe (Indian National Space Promotion and Authorization Center), aims to propel the growth of space startups, strengthen India’s space economy, and position the country as a global leader in space technology. 
• The establishment of this fund aligns with the government’s broader vision of promoting innovation, ensuring economic growth, and fostering self-reliance in high-tech industries, thus supporting the goals of Atmanirbhar Bharat.

Source: The Hindu 

About Indian National Space Promotion and Authorization Centre (IN–SPACe):

• It is a single-window autonomous agency under the Department of Space of the Government of India. 
• It was established in June 2020.
• It acts as a link between the ISRO and private sector companies, assessing \"how best to utilize India’s space resources and increase space-based activities.\"
• It evaluates demands of private sector companies, including educational institutes, and finds ways to attune their demands, in consultation with ISRO.
• Its decisions are binding on both ISRO and private sector organizations.
• The space sector was earlier regulated by ISRO, but now the organization focuses on its core activity of research and development.

Venture Capital Fund

• The proposed Rs. 1,000 crore Venture Capital Fund aims to support the growth of India’s space economy, currently valued at $8.4 billion, with a target to reach $44 billion by 2033.
• It addresses the need for risk capital in a high-tech sector, as traditional lenders often hesitate to finance startups. The fund is expected to support approximately 40 startups.
• It will boost investor confidence and signal a commitment to advancing space reforms, operating as an Alternative Investment Fund under SEBI regulations to provide early-stage equity to startups.
• It will be deployed over five years from the commencement of operations. The average annual investment is expected to range from Rs. 150 to 250 crore, depending on available opportunities.
• Expected Benefits:
  • Multiplier Effect: Attracting additional funding from private investors for later-stage development.
  • Company Retention: Reducing the trend of Indian companies moving abroad.
  • Space Economy Expansion: Aiming for a fivefold increase in the Indian space economy over the next decade.
  • Advancements in Technology: Strengthening India’s leadership through private sector engagement.
  • Enhanced Global Competitiveness: Positioning India favorably in the global space market.
  • Support for Atmanirbhar Bharat: Contributing to national self-reliance goals.
• Employment Generation Potential:
  • The fund is expected to create jobs across the entire space supply chain—upstream, midstream, and downstream.
  • Investments may lead to hundreds of direct jobs in fields like engineering, software development, data analysis, and manufacturing.
  • Indirect job creation could extend to thousands in supply chains, logistics, and professional services.
  • A strong startup ecosystem will not only create jobs but also develop a skilled workforce, driving innovation in the space sector.

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