The Union Cabinet on Thursday approved a Venture Capital Fund worth Rs 1,000 crore for the space sector startups, which is expected to support about 40 startups.

       The move is expected to accelerate the growth of the private space sector in India, driving advancements in space technology. The Centre aims to retain domestic space companies and hopes that this capital infusion will facilitate additional funding for later-stage development. This fund was announced by Finance Minister Nirmala Sitharaman during the Union Budget 2024-25.

       ALSO READ: Space startups see funding rise as investors bet on capex ventures: Report

       The fund’s deployment period will extend up to five years from the start of its operations, with an average annual deployment of Rs 150-250 crore, the Centre said. In the financial year 2025-26 (FY26), the Centre has estimated a fund of Rs 150 crore for this project. In the three subsequent years, a fund of Rs 250 crore will be allocated, while in the final year, the amount is expected to be Rs 100 crore.

       #Cabinet approves establishment of Rs.1,000 crore Venture Capital Fund for Space Sector under the aegis of IN-SPACe Read here: https://t.co/LGXLEzDF0P#CabinetDecisions pic.twitter.com/NC0URy8Spj

       — PIB India (@PIB_India) October 24, 2024

       More From This Section

       Money laundering big threat to online gaming, digital economy: Report

       Thaw in China ties unlikely to deter India's plans for steel tariffs

       India to lead AI age, says Mukesh Ambani as Nvidia launches Hindi model

       Telcos warn on OTP disruptions as Trai's new traceability rules begin Nov 1

       Govt formulating new broadcast policy to regulate OTTs: Minister Murugan

       The fund will be managed by the Indian National Space Promotion and Authorisation Centre (IN-SPACe). It is an agency for promoting the private sector’s participation in the space industry. Located in Bhopal and Ahmedabad, the agency was launched by Prime Minister Narendra Modi in 2022.

       “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,” the Centre said, noting that for growth stage, the investment could be up to Rs 30 crore. For the late growth stage, it could be between Rs 30-60 crore.

       During the cabinet meeting, two railway projects worth Rs 6,798 crore were also approved by the Cabinet. Spread across eight districts of Andhra Pradesh, Telangana and Bihar, these projects will improve logistical efficiency, boost connectivity and contribute to sustainable development goals by reducing greenhouse gas emissions. The project is expected to be completed in five years, the Centre said.

       Also Read

       Premium

       The state of global venture capital: India must avoid Western pitfalls

       Private equity, venture capital bets fall 40% to $8.8 bn in Q2: Report

       Early-stage VC firm 8i Ventures scores 12X return on M2P Fintech exit

       Andrew Ng's AI fund makes first India investment with healthcare firm Jivi

       LC Nueva Investment announces new venture capital fund to raise Rs 250 cr