Spacetech industry asks for increase in FDI limit to 74pc

Spacetech industry asks for increase in FDI limit to 74pc
Spacetech industry asks for increase in FDI limit to 74pc

The spacetech industry has asked to increase the current FDI limit from 49 percent to 74 percent, in line with regulations for other defence industries, at a Department of Space meeting

This was proposed at last month’s Department of Space meeting and that most private players were in line with this thinking. “If India’s spacetech industry wants to compete with global companies, then it needs access to global capital,” said a source.

Nakul Batra, associate partner at DSK Legal, said, that under the current FDI laws, only the establishment and operations of satellites was permitted for the space sector. Thus, the companies could request for 100 percent FDI via the government route, with government approvals.

Earlier this year, Union Minister of Science & Technology, Dr Jitendra Singh, said that the government was working on the FDI policy. Industry body iN-SPACE declined to comment because the policy was “under consultation.”

Indian spacetech startups have seen rapid growth in investments in recent weeks, with satellite company Pixxel picking up a $25 million strategic investment by Accenture, launch vehicle manufacturer Skyroot raising $51 million by GIC, and rumours that fellow rocket launcher Aginkul Cosmos could be in the midst of raising $20 million itself, as per reported by YourStory.

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