VC Fund for space sector will have phenomenal impact on youth, says PM Narendra Modi
Prime Minister Narendra Modi expressed happiness on Wednesday about the cabinet's decision to establish a Venture Capital Fund dedicated to the space sector.
ANI
Oct 24, 2024 20:58 IST
New Delhi [India], October 24 (ANI): Prime Minister Narendra Modi expressed happiness on Wednesday about the cabinet's decision to establish a Venture Capital Fund dedicated to the space sector.
"Excellent news for the space sector! The Cabinet's decision to establish a Venture Capital Fund dedicated to the space sector will have a phenomenal impact on the youth. It will give opportunities to several innovative minds and add momentum to our space programme," Prime Minister Modi added in his social media post on X.
The Union Cabinet today approved the setting up of a Rs 1000 crore Venture Capital Fund dedicated to the space sector, under the aegis of IN-SPACe.
Briefing reporters after a meeting of the union cabinet, Information and Broadcasting Minister Ashwani Vaishnaw said that the deployment period of the proposed Rs.1,000 crore VC fund is planned to be up to five years from the actual date of start of the fund operations.
The average deployment amount could be Rs.150-250 crore per year, depending on the investment opportunities and fund requirements.
The Centre, as part of its 2020 space sector reforms, established IN-SPACe to promote and oversee private sector participation in space activities. IN-SPACe has proposed a Rs1000 crore Venture Capital Fund to support the growth of India's space, economy, currently valued at S8.4 billion, with a target to reach USD 44 billion by 2033.
The fund aims to address the critical need for risk capital, as traditional lenders are hesitant to fund startups in this high-tech sector.
With nearly 250 space startups emerging across the value chain, timely financial support is crucial to ensure their growth and prevent talent loss overseas, a release said.
"The proposed government-backed fund will boost investor confidence, attract private capital, and signal the government's commitment to advancing space reforms. It will serve as an Alternative Investment Fund under SEBI regulations, providing early-stage equity to startups and enabling them to scale for further private equity investments," the release added. (ANI)
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