14 September , 2022 Fdiindia
Stakeholder's Pitches for 74 Percentage in Space Tech Industry
The space tech industry asks for seventy-four percent FDI (Foreign Direct Investment) in line with defence sector. However, if any private sector currently wants to engage via FDI for establishing and operating satellites, government approval will be necessary.
This idea was proposed in a meeting held with several stakeholders at the Department of Space last month. In the meeting, some sources with knowledge stated that this suggested seven forty percent would be in line with the FDI for the defence area, which was increased from forty-nine percent to 74 percent.
Recently the government launched the Indian National Space Promotion and Authorization Centre to promote space activities of private players. However, they refuse to comment on the matter as now the policy is under consultation.
According to sources, if India's space tech industry wants to contend with other global companies in the market, then it definitely requires access to international capital. In a Series-B financing round conducted by Singapore-headquartered GIC earlier this month, one Hyderabad- based space tech startup known as Skyroot Aerospace raised fifty-one million dollars.
Correspondingly, in the previous month, Dublin-headquartered IT firm Accenture declared they had invested twenty-five million dollars in Bengaluru-based startup Pixxel, which is developing the world's highest resolution hyperspectral imaging constellation of satellites.
Associate partner at DSK Legal, Nakul Batra, explained under the present FDI authorities' only establishment and operation of satellites is visualized as part of the space industry. However, he also said, "100 percent FDI under the government route is permitted for establishment and operation of satellites."
In February, Jitendra Singh, union minister of State for Science and Technology, mentioned that the government is planning to approve FDI in the space sector to raise investment in the industry.
"Undoubtedly the availability of large capital and access to cutting-edge technology in the form of FDI (considering the sensitivity and strategic importance) similar to the relaxation in FDI in the defence sector, will likely catalyze rapid development and expansion of the Indian space infrastructure," Batra said.
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