₹1,000-Crore IN-SPACe–SIDBI Space VC Fund to Support Indian Space Innovation

The Indian National Space Promotion and Authorisation Centre (IN-SPACe), in collaboration with SIDBI Venture Capital Limited (SVCL), has launched a ₹1,000-crore Venture Capital Fund to support India’s private space startups. Approved by SEBI and the Union Cabinet, the fund aims to provide early-stage and growth capital for innovations in satellites, launch systems, in-space services, and downstream applications.

₹1,000-Crore IN-SPACe–SIDBI Space VC Fund to Support Indian Space Innovation

Objective and Vision

The fund is part of India’s broader plan to expand and privatize its space economy, encouraging young entrepreneurs to build indigenous space technologies. It aims to:

• Improve access to capital for emerging space companies.
• Promote self-reliance in satellite and launch technology.
• Accelerate commercialization of new innovations.
• Position India as a global hub for affordable and sustainable space solutions.

Key Focus Areas

1. Launch Technologies – Support for startups developing launch vehicles and propulsion systems.
2. Satellites & Payload Systems – Funding for satellite manufacturing and payload innovation.
3. In-Space Services – Encouragement for companies working on space servicing, manufacturing, and debris management.
4. Earth Observation & Communication – Strengthening applications that use space data for communication and research.
5. Downstream Applications – Investments in startups using space data for agriculture, climate monitoring, and defense.

Leadership Statements

Lochan Sehra (IN-SPACe Joint Secretary) said the fund will give startups “the financial runway to test ideas, build indigenous technology, and scale confidently.”
Arup Kumar (MD & CEO, SVCL) added that the fund will help young companies “innovate boldly and contribute to India’s emergence as a global space power.”

Background and Administration

• The Union Cabinet approved the fund in October 2024.
• The Securities and Exchange Board of India (SEBI) has granted formal approval.
• SVCL, a 100% subsidiary of SIDBI, will act as the Fund Manager.
• The Contribution Agreement was signed by Lochan Sehra (IN-SPACe) and Arup Kumar (SVCL), marking the official start of investment operations.

Significance for India’s Space Ecosystem

The ₹1,000-crore fund represents a major milestone in India’s journey toward a thriving private space industry. It is expected to:

• Empower startups and drive technological innovation.
• Strengthen domestic manufacturing in key space sectors.
• Create high-value jobs and attract global investments.
• Boost India’s global competitiveness in space research and technology.

Exam-Oriented Notes

• Fund Name: IN-SPACe–SIDBI Space Venture Capital Fund
• Total Fund Size: ₹1,000 crore
• Partners: IN-SPACe & SIDBI Venture Capital Limited (SVCL)
• Fund Manager: SVCL (subsidiary of SIDBI)
• Approval: Union Cabinet (October 2024) & SEBI
• Purpose: Support early-stage and growth-stage startups in India’s space sector
• Focus Areas: Launch systems, satellites, payloads, in-space services, earth observation, communication, downstream applications
• Key Officials: Lochan Sehra (IN-SPACe) and Arup Kumar (SVCL)

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Question & Answer

Q1. IN-SPACe and SIDBI have launched a Venture Capital Fund worth how much?
(a) ₹500 crore
(b) ₹750 crore
(c) ₹1,000 crore
(d) ₹2,000 crore
Answer: ₹1,000 crore

Q2. What is the main aim of the IN-SPACe–SIDBI Space Venture Capital Fund?
(a) Promote tourism in space
(b) Provide capital to startups in the space sector
(c) Train astronauts for ISRO missions
(d) Develop defense satellites
Answer: Provide capital to startups in the space sector

Q3. Which organisation has been appointed as the Fund Manager for this project?
(a) NITI Aayog
(b) DRDO
(c) SVCL (SIDBI Venture Capital Limited)
(d) ISRO
Answer: SVCL (SIDBI Venture Capital Limited)

Q4. The ₹1,000-crore IN-SPACe–SIDBI fund was approved by the Union Cabinet in which year?
(a) 2022
(b) 2023
(c) 2024
(d) 2025
Answer: 2024

Q5. Who signed the Contribution Agreement to launch the IN-SPACe–SIDBI Space VC Fund?
(a) Lochan Sehra and Arup Kumar
(b) Rakesh Sharma and K. Sivan
(c) Nirmala Sitharaman and S. Somnath
(d) Piyush Goyal and Anurag Jain
Answer: Lochan Sehra and Arup Kumar

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