On Thursday, the Union Cabinet sanctioned a ₹1,000 crore Venture Capital Fund aimed at supporting startups in the space sector, with plans to assist around 40 ventures. This initiative is designed to accelerate the development of India’s private space industry and promote innovation in space technology.
The government intends to strengthen domestic space companies and believes this funding will encourage additional investment for advanced stages of development. Finance Minister Nirmala Sitharaman first announced the fund during the Union Budget for 2024-25.
The fund will be operational for a period of up to five years, with an anticipated annual deployment of ₹150-250 crore. For the financial year 2025-26, ₹150 crore has been earmarked for this project. In the following three years, ₹250 crore will be allocated each year, while the final year is expected to see an investment of ₹100 crore.
Management of the fund will fall under the Indian National Space Promotion and Authorisation Centre (IN-SPACe), an agency established to enhance private sector participation in the space industry, which was launched by Prime Minister Narendra Modi in 2022.
The government outlined that the investment range will be between ₹10 crore and ₹60 crore, depending on the company’s development stage, growth trajectory, and potential contributions to national space capabilities. Specifically, for growth-stage companies, the investment may reach up to ₹30 crore, while late-stage growth companies could receive between ₹30 crore and ₹60 crore.
Additionally, during the cabinet meeting, approval was granted for two railway projects valued at ₹6,798 crore, spanning eight districts in Andhra Pradesh, Telangana, and Bihar. These projects aim to enhance logistical efficiency, improve connectivity, and support sustainable development by lowering greenhouse gas emissions. The government expects these projects to be completed within five years.
