The bill is expected to cover international and national obligations, define offences and subsequent punishments, barrier of entry for private companies, and liability for damages caused.
“It would be put up for stakeholder consultation post internal department approval,” Goenka told ET.
Goenka said the Rs 1,000 crore venture capital fund for space startups announced in the Union Budget in July is also expected to become operational by the first quarter (April-June) of the next fiscal year.
The process of selecting a professional manager for the VC fund is underway, he said. It is being established as a Securities and Exchange Board of India-registered Alternative Investment Fund Category II fund.
The fund’s mechanism and framework are already in place, which will ensure that the fund operates like any other industry-standard VC fund. “Each investment will range between ₹10 crore and ₹60 crore, with an average ticket size of ₹30-40 crore,” he said.
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“As for startups, they will be evaluated on parameters such as their technology readiness, market potential and alignment with national priorities in the space sector. This means we anticipate funding around 35 startups over the fund’s lifecycle,” Goenka said.“It’s important to note that this fund is not a grant; it’s an investment,” he pointed out. Startups with strong business plans, clear revenue models and scalable technologies will be prioritised.
The goal is to build a robust ecosystem where these startups can drive innovation, create demand across sectors, and contribute to India’s vision of becoming a $44 billion space economy by 2033, he said.
“The Space Bill will allow for more clarity and a clean framework with which the private sector can do independent space missions with the Indian Space Research Organisation’s support. This is a direct boost to all private entities participating in space technology in India,” said Srinath Ravichandran, cofounder and chief executive of AgniKul Cosmos.
AgniKul, incubated at IIT Madras, test launched an indigenously designed and developed rocket with a single-piece 3D-printed engine from Sriharikota in May this year. This was the first launch globally of a rocket powered by a 3D-printed engine.
“The VC fund is a game-changer for how the rest of the world looks at space startups in India. Besides giving capital, it generates tremendous faith in the financial ecosystem for viewing the sector as an area for doing business,” added Ravichandran.
Pawan Chandana, cofounder and chief executive of Hyderabad-based Skyroot Aerospace, told ET that given the significant investment demands of space technology, a dedicated national space fund would provide a launchpad for startups to innovate.
“The upcoming Space Activities Bill and the Rs 1,000 crore space fund are bold statements of intent. If we empower our entrepreneurs with the right resources and regulatory framework, India has the potential to become a major player in the global space economy,” Chandana said.
Through its Vikram-series launch vehicles, the company aims to provide cost-effective launch services. Its maiden orbital flight of Vikram-1 is scheduled for 2025.
