In a major boost to innovation in space technology, Cabinet approves establishment of Rs 1000 cr venture fund to support space start ups
The Union Cabinet has approved the establishment of a Rs 1000 crore venture capital fund to support startups in India’s growing space industry. This move is poised to give a significant boost to innovation and entrepreneurship in space technology and applications.
Union Minister Ashwini Vaishnaw emphasized how Prime Minister Narendra Modi’s policies have significantly changed India’s innovation and startup environment. He pointed out that India has more than 100 unicorns now, exceeding the count in several affluent European Union nations.
The space industry, in particular, is set to experience rapid growth, and this fresh fund demonstrates the government’s dedication to offering additional chances for young people and entrepreneurs in this advanced sector.
Initiative aims to support 30-40 startups initially
The initiative aims to support 30-40 startups initially, focusing on taking innovative concepts from ideation to commercialisation.
The fund will be organized as an Alternative Investment Fund falling under Category 1 and 2, in compliance with SEBI regulations. SIDBI and SBI will both be responsible for managing the fund, ensuring professional supervision and direction.
Also read: Chandrababu Naidu plans to transform Andhra into ‘Drone Capital of India’
This particular venture capital fund is anticipated to have a significant impact on fostering innovative concepts in space technology, satellite applications, and associated areas.
The decision is in line with India’s overall efforts to establish itself as a major player in the space sector, following achievements like the Chandrayaan missions and the expansion of space commercialization.
It further enhances other government efforts to encourage private sector involvement in space exploration and utilization.
Growth of space sector poised to drive innovation across multiple industries
From satellite-based services for agriculture and disaster management to advanced communication systems and space exploration missions, the growth of the space sector is poised to drive innovation across multiple industries.
