Union Budget 2023: Department of Space receives Rs 12,544 crore allocation

According to an ISRO report, IN-Space has received more than 150 proposals for future consideration from start-ups, MSMEs, and industries. (File image: Reuters)

In the Union Budget 2023 presented by Finance Minister Nirmala Sitharaman on February, the Department of Space under which prestigious institutions such as the Indian Space Research Organisation (ISRO) fall, received a Rs 12,543.91 crore allocation.

This estimate is marginally higher (0.56 percent) than the Rs 12,473 crore allocated for the department two years ago; 8 percent lesser than the budget estimate for FY 2022-2023.

In last year's budget, the government allocated Rs 13,700 crore. However, it reduced the estimate in the revised budget to Rs 10,530 crore.

Indian National Space Promotion and Authorisation Centre (IN-Space), the government's one-stop body for all dealings with private space industry players, received a more than four times increased budget estimate at Rs 95 crore.

IN-Space has become a significant contributor to the space tech start-up industry in the short time that it has been operational. It has emerged as a focal point for easing communication, integration, and permission-related complexities between government and private-sector players.

According to an Indian Space Research Organisation (ISRO) report, IN-Space has received more than 150 proposals for future consideration from start-ups, MSMEs, and industries.

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In last year's budget, the government body allocated Rs 33 crore. However, in the revised estimate, it was reduced to Rs 21 crore making this year's allocation a more than four times increase.

Space tech industry players have been batting for an increase in In-SPACE's allocation, stating that the increase would help with common testing facilities and other infrastructure that is needed by space tech industry players. Start-ups had requested a Rs 100 crore allocation for IN-Space.

Industry association SatCom Industry Association of India (SIA-India) had also requested the Indian government to lay down In-SPACE's mandate in legislation. The body had pointed out that its composition, powers, functions and responsibilities are not yet defined in any legislation.