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Spacecom Policy Notification Soon, Might Specify FDI Limits

    6 March , 2023         Fdiindia

Spacecom Policy Notification Soon, Might Specify FDI Limits

The policy of spacecom is likely to be notified in a couple of months and might set multiple foreign direct investments (FDI) limits for significant businesses in the sector, with the highest foreign ownership likely to be permitted in satellite broadband services to attract global investors. 

The draft policy of spacecom is in the final stages of being cleared at the highest levels in the government, as stated by the government officials and industry executives privy to the latest discussions on the draft.

“The government is likely to define separate FDI caps in the space domain for three distinct categories of satellite business, as in, satellite applications, and broadband services, satellite manufacturing, and satellite launch vehicle operations,” as per Lt Gen AK Bhatt, director general, Indian Space Association (ISpA), a grouping of space and satellite companies. 

Bhatt stated that the Spacecom policy is likely to outline the most liberal FDI norms for satellite applications (which would include broadband services) to encourage global companies to invest aggressively in the satellite broadband segment through the direct route. 

The automatic FDI route has yet to be opened to private satellite players, unlike telecom operators. At present, all FDI proposals, including relevant technical applications in satellites,  have to be cleared by the department of space. 


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