The Centre’s initiative to offer incentives to space startups will hinge on the space policies and provisions of individual states, according to information obtained. States such as Telangana, which already have a dedicated space policy, are leading the charge by extending a variety of incentives to emerging space ventures.
During an address at the inaugural National Space Day on August 23, Pawan K Goenka, Chairman of the Indian Space Promotion and Authorisation Centre (IN-SPACe), emphasized that the government is collaborating closely with state governments to establish both fiscal and non-fiscal incentives designed to bolster manufacturing within the space sector.
According to a senior government official who spoke on the condition of anonymity, these incentives will be directly tied to the space technology policies of the respective states. Telangana, which introduced its space tech policy in 2022, has already reaped the benefits, with startups like Skyroot Aerospace and Dhruva Space gaining significant advantages, as noted by Jayesh Ranjan, the state’s IT and industries secretary.
“In accordance with the incentives outlined in our space tech policy, we have provided various forms of support, including land allocation, to enable Dhruva Space and Skyroot Aerospace to establish their manufacturing facilities in Hyderabad,” Ranjan explained. He further stated that the incentives announced by IN-SPACe are integrated into the broader framework established by the state’s policy.
Both Skyroot Aerospace and Dhruva Space have their operations based in Hyderabad. While IN-SPACe refrained from disclosing specific details regarding the distribution of incentives between the Centre and the states, as well as other related aspects, it was clarified that the policy is still awaiting final approval. Telangana’s support for startups encompasses a broad range of benefits, including grants, subsidies, and tax incentives.
Startups in the state can access funding opportunities and are granted exemptions from stamp duty and similar taxes, while investors are eligible for tax breaks. Abhay Egoor, Chief Technology Officer and Co-founder of Dhruva Space, highlighted the seamless and fully digital process through which his company was able to secure land for its new spacecraft manufacturing facility.
“The staggered payment incentive offered by the state has played a crucial role in accelerating our plans,” Egoor noted, adding that the first phase of the facility, covering 120,000 square feet and including a solar array fabrication unit, is expected to be operational within the next 12 to 18 months. Other states are also moving forward with their space policies.
Tamil Nadu has issued a draft space policy and is positioning itself as a future global leader in the space industry, with plans to develop space parks near Kulasekarapattinam. The state’s policy is focused on attracting investment and fostering collaboration with multinational corporations to support the growth of space startups. Similarly, Karnataka is in the process of formulating its own space policy.
