Spacetech industry asks for increase in FDI limit to 74pc
The spacetech industry has requested the government to allow an increase in the foreign direct investment (FDI) limit for the industry from the current 49 percent to 74 percent. This request is in line with recent changes to the defence sector that allow for a 74 percent FDI limit.
First reported by MoneyControl, 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,” a source told MC.
YourStory has not independently verified this report.
Speaking to MC, 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 to MC 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.