India set to relax FDI norms in space sector in bid to give a boost to Satcom
FDI) policy for the space sector by allowing up to 74% overseas ownership through the automatic route and up to 100% through the government route to attract top dollars from marquee global investors in satellite communications, senior officials told ET.
Liberalised FDI limits are on the cards so that companies based in India can access the latest global technologies in a host of space-sector activities, including satellite manufacturing, satellite communications/operations and local production of satellite components, user devices and ground segment systems such as earth stations. Foreign direct investment up to 49% may also be permitted in satellite launch vehicle and associated system operations.
«We expect the new FDI policy for the space sector to be approved soon.
For different space activities, foreign investment of 49% or 74% is likely to be permitted via the automatic route, and in most situations up to 100% through the government route will be permitted.» Pawan Goenka, chairman, space industry regulator Indian National Space Promotion and Authorisation Centre (IN-SPACe), told ET.
The new FDI rules for the space sector will soon be notified by the Department for Promotion of Industry & Internal Trade, which is working closely with IN-SPACe, the communications ministry and the Department of Space (DoS).
Easing of foreign ownership rules for the space services sector is likely to be on the lines of relaxations undertaken in the defence industry a few years ago, say senior industry executives. IN-SPACe is closely involved as it's the sole single-window agency to authorise the gamut of space activities by both government and private satcom players.
