With an aim to bolster the space industry in the country, the Indian government's Indian National Space Promotion and Authorization Centre (IN-SPACe) announced a Rs 1 crore seed fund scheme for early-stage space start-ups.
Selected start-ups will receive a figure of up to Rs 1 crore in three or more installments, In-SPACe, said in its guidelines for applying for the seed fund scheme. The exact amount of the funding will be decided by an expert committee.
Eligible applicants include early-stage start-ups that use space technology to address upstream/ midstream and downstream challenges in the sector, IN-SPACe said.
According to European Space Agency, the upstream segment of space includes research, space manufacturing and ground systems, whereas the downstream segment includes space operations for terrestrial use and products and services that rely on satellite technology, signal, and data to function.
"During the initial stages a start-up faces funds crunch, as financial institutions or commercials banks do not come forward due to lack of clarity on the future prospects. In order to overcome this, IN-SPACe plans to provide initial financial assistance to few Indian space start-ups that have a novel concept," the government's space body said.
IN-SPACe was formed Department of Space to promote, enable, authorise space activities by 'non-government entities', a term used in the space sector for private players.
Ownership must be Indian
To apply for this seed fund scheme, a start-up will require at least 80 percent shareholding by Indians, IN-SPACe said.
"..and the company should not have gone through a funding round. However, investment from venture capitalists is permitted," it said.
The body will also not allow start-ups that have received more than Rs 50 lakh of monetary support under any other Central or State government schemes.
Meanwhile, the Expert Committee (EC) will evaluate the novelty of the proposal -- whether it meets the future or existing needs of the Indian space sector, the development of new products with the help of indigenous technology, the potential to scale and so on.
The members of EC shall include members of IN-SPACe, senior government officials, as well as industry and venture capitalists.
The start-ups will also be required to submit a fund utilisation certificate after they receive the fund from IN-SPACe. Their progress will be monitored by the project facilitation and monitoring committee (PFMC).
This body will include IN-SPACe directors, a joint secretary in the Department of Space, a deputy director and senior scientists of ISRO.
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