Lok Sabha Question No. 2191 (UNSTARRED), answered on 2025-03-12
Subject: Foreign Direct Investment in the Space Sector
Ministry: SPACE
Asked by: Shri K Sudhakaran

## GOVERNMENT OF INDIA DEPARTMENT OF SPACE

## LOK SABHA

## UNSTARRED QUESTION NO. 2191 TO BE ANSWERED ON WEDNESDAY, MARCH 12, 2025

## FOREIGN DIRECT INVESTMENT IN THE SPACE SECTOR

## 2191.  SHRI K SUDHAKARAN:

## Will the PRIME MINISTER be pleased to state:

- (a) whether the Government has revised Foreign Direct Investment  (FDI)  limits  in  the  space  sector  and  if  so,  the details and expected benefits thereof along with the rationale therefor;
- (b) the  status  of  India's  human  spaceflight  Gaganyaan  mission including delays and cost escalations;
- (c) whether  the  Government  has  established  a  mechanism  to ensure technology transfer from ISRO to private space startups and if so, the details thereof;
- (d) the steps being taken to develop indigenous satellite manufacturing capabilities and reduce dependency on foreign suppliers; and
- (e) whether the Government plans to set up a dedicated spaceport for private satellite launches and if so, the details thereof along with the expected timeline for its operationalization?

ANSWER MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES & PENSIONS AND IN THE PRIME MINISTER'S OFFICE (DR. JITENDRA SINGH):

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(a) The  union  cabinet  in  its  meeting  held  on  21.02.2024  has approved the amendment in Foreign Direct Investment (FDI) in the space sector.  Consequent to amended FDI policy in space sector, Department  of  Economic  Affairs  (DEA),  Ministry  of  Finance  issued the gazette notification No. CG-DL-E-16042024-253724 dated 16.04.2024 for amending the Foreign Exchange Management (NonDebt  Instruments)  Rules,  2019,  in  Schedule  I,  in  the  table  for  Sl. No.12 following has been substituted, namely:

|   (1) | (2)                                                                                                         | (3)          | (4)                                             |
|-------|-------------------------------------------------------------------------------------------------------------|--------------|-------------------------------------------------|
|  12   | Space Sector                                                                                                | Space Sector | Space Sector                                    |
|  12.1 | (a) Satellites- Manufacturing and Operation (b) Satellite Data Products (c) Ground Segment and User Segment | 100%         | Automatic up to 74% Government route beyond 74% |
|  12.2 | (a) Launch Vehicles and associated systems or sub-                                                          | 100%         | Automatic up to 49% Government                  |

| systems (b) Creation of spaceports for launching and receiving spacecraft                                        | route beyond 49%   |
|------------------------------------------------------------------------------------------------------------------|--------------------|
| 12.3 Manufacturing of components and systems or sub- systems for satellite, ground segment and user segment 100% | Automatic          |

- (b) The following is the status, reasons for delay and revision in cost for the Gaganyaan Programme:

The  status  of  the  progress  of  Gaganyaan  programme  is  as follows :

-  Human  Rated  Launch  Vehicle : Ground  testing  of  propulsion systems  stages,  including  solid,  liquid  and  cryogenic  engine, towards human  rating of the launch vehicle have been completed .
-  Crew Module Escape System : Design & realization of five types of Crew Escape system solid motors completed. Static testing of all five types of solid motors completed. First Test Vehicle mission (TV-D1) for the performance validation of crew escape system (CES) and parachute deployment has been successfully accomplished.
-  Orbital Module Systems : Design & realisation of Crew Module and  Service  Module  structure  has  been  completed . Various Parachute Systems have been tested through Integrated Main parachute Air drop Test and Rail Track Rocket Sledge Tests . Ground test programme towards human rating of Crew Module &  Service  module  Propulsion  System  have  been  completed. Characterization of Thermal  Protection  System  has  been completed .
-  Gaganyatri Training : Two out of three semesters of the training programme  completed . Independent  Training  Simulator  and Static Mockup Simulators realized .
-  Major Ground Infrastructure : Orbital Module Preparation Facility,  Gaganyaan  Control  Centre  at  ISTRAC,  Gaganyaan Control  facility  at  SDSC  SHAR,  Crew  training  facility  and modifications of Second Launch pad have been completed .
-  Gaganyaan First Uncrewed mission : Launch campaign for first uncrewed mission has commenced on December 18, 2024 and assembly of one of two solid motor has been completed. Liquid Propulsion Stages and Cryogenic stage are ready . Crew Module and  Service  Module  structure  realization  completed . Flight integration activities are in progress .

## Major reasons for the delay:

-  Avionics components production was severely affected due to COVID-19 pandemic. Supply chain disruption resulted in irregular  supply  of  raw  materials  and  consequent  delay  in
- realisation of hardware. The deliveries were shifted/rescheduled delaying the programme.
-  Global shortage in the supply of space  grade  and  EEE components.
-  Major design revision in orbital module to contain overall mass within HLVM3 capability.
-  Longer  cycle  time  for  the  indigenous  development  of  life support  system  being  new  technology,  since  procurement through external route couldn't materialise.

The total funding for Gaganyaan Programme has been enhanced  to  ₹20,193  Crore  to  address  the  programmatic requirements  as  per  the  revised  scope  which  includes  new developments  for  Bharatiya  Antariksh  Station  &  precursor missions,  and  additional  requirements  to  meet  the  ongoing Gaganyaan Programme.

- (c) Yes sir, IN-SPACe has instituted a mechanism for transfer of ISRO's technology to Indian industries, wherein, a list of technologies available for transfer to Industry has been listed in the IN-SPACe  portal.  The  technologies  are  also  broadcasted  to  about 500 industries registered with IN-SPACe. As on 31 December 2024, about 75 technology transfer agreements have been signed.
- (d) The Department has a mechanism to identify and enable the indigenisation of various components that are required for satellites.  This  mechanism  has  resulted  in  the  indigenisation  of systems such as Travelling Wave Tube Amplifier, Atomic clocks and other  components  used  for  various  sub  systems  such  as  relays, connectors, heaters, thermistors, crystal oscillators etc.

(e) No Sir. However, Non-Governmental Entities (NGEs) are encouraged  to  utlilise  the  facilities  built  by  DoS/ISRO  as  per  the Indian Space Policy -2023.

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