Foreign Direct Investment (FDI) policy on space sector
PM Modi-led Union Cabinet on Wednesday took a series of key decisions, which included the approval for amendments to the existing FDI policy on space sector.
Under the amended policy, 100% FDI is allowed in space sector.
The liberalised entry routes are aimed to attract potential investors to invest in Indian companies in space.
The amended policy extends the facility of up to 74% FDI under the automatic route for satellite manufacturing and operation, satellite data products and ground/user segment.
Up to 49% FDI under the automatic route will be allowed for launch vehicles and associated systems or subsystems.
This 49% includes, creation of spaceports for launching and receiving spacecraft.
Beyond 49%, these activities will be under government route.
Mr. Thakur said up to 100% FDI under the automatic route would be permitted for manufacturing of components and systems/sub-systems for satellites, ground segment and user segment.
The satellites sub-sector has been divided into three different activities with defined limits for foreign investment in each such sector.
As per the existing FDI policy, foreign investment is allowed in establishment and operation of satellites via government-approval route only.
The Cabinet also took a decision related to the continuation of Flood Management and Border Areas Programme scheme with ₹4,100-crore outlay for five years from 2021-22 to 2025-26.
Under its flood management component with an outlay of ₹2,940 crore, Central assistance will be provided to States.
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