Prime Minister Modi.Image source: PTI
Thursday’s Union Cabinet meeting chaired by Prime Minister Narendra Modi took a big step forward. The meeting approved the establishment of a Rs 1,000-crore venture capital fund under the auspices of IN-Space specifically for the aerospace sector. While presenting this year’s budget, Union Finance Minister Nirmala Sitharaman announced the establishment of a venture capital fund. The bill has now been approved by the cabinet on Thursday.
The cabinet has approved the proposal that the fund will invest in 30-35 space startups in two phases. The investment will be Rs 50-100 million in the first phase and Rs 100-600 million in subsequent phases.
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PM Modi: Space program will gain momentum
Prime Minister Narendra Modi tweeted on social networking site X that there was good news in the space sector. He said the cabinet’s decision to set up a venture capital fund specifically for the aerospace sector will have a huge impact on young people. This will provide opportunities for many innovative ideas and advance our space program.
Great news for the space sector!
The Cabinet’s decision to establish a venture capital fund specifically focused on the space sector will have a huge impact on young people. It will provide opportunities for some innovative talent and add momentum to our space program.
— Narendra Modi (@narendramodi) October 24, 2024
Finance Minister Nirmala Sitharaman announced the venture capital fund during the budget. The finance minister announced the establishment of the fund while presenting the third budget of the NDA government led by Prime Minister Narendra Modi.
Giving information about the fund, Information and Broadcasting Minister Ashwini Vaishnav said on Thursday that the fund will be run under the auspices of India’s National Space Promotion and Authorization Center and in collaboration with the Indian Space Research Organization .
Target $44 billion by 2033
The fund was proposed by IN-SPACE to support India’s space economy, which is currently valued at $8.4 billion. The fund aims to reach $44 billion by 2033.
Ashwini Vaishnav said the goal is to meet the important needs of venture capital. Traditional lenders are hesitant to provide financing to startups in the high-tech space.
Venture capital funds will be run by professional fund managers. As per SEBI Guidelines for Alternative Investment Funds, the fund will consist of trustees, investment committee, advisory board, fund manager and other structures.
