Tamil Nadu : Space Industrial Policy

Why in News? Tamil Nadu’s Cabinet approved the Space Industrial Policy, making it the third state after Karnataka and Gujarat to formulate a state-specific space policy. This aligns with the Indian Space Policy 2023 by the Union government, which aims to bolster the space ecosystem, and follows recommendations from IN-SPACe (Indian National Space Promotion and Authorisation Centre) to encourage state-level policies for non-government entities in the space sector.

Relevance : UPSC Pre &  Mains

Prelims : in SPACcE/ Indian Space Policy 2023

Mains :   GS 3 (  SPACE/Technological Dev>)

Key Points of Tamil Nadu’s Space Industrial Policy:

• Objective: Attract Rs 10,000 crore in investments and create ~10,000 direct and indirect jobs in the space sector over the next five years.
• Incentives:

Payroll Subsidy: For companies involved in R&D or establishing global capability centres in the space sector.

Space Bays: Designated regions offering structured incentive packages for investments below Rs300 crore.

Industrial Housing Incentive: Space industrial park developers can avail a 10% subsidy on the cost of developing residential facilities within the park, capped at Rs10 crore over 10 years.

Context: The policy supports the growth of non-government entities in the space sector, as promoted by IN-SPACe, and aligns with national efforts to enhance India’s space ecosystem.

• The Indian Space Policy 2023, introduced by the Government of India, is a comprehensive framework to enhance the country’s space ecosystem by encouraging private sector participation, fostering innovation, and aligning with global space advancements.
• Approved in April 2023, it aims to liberalize the space sector, promote non-government entities (NGEs), and position India as a global hub for space activities.

Key Highlights of the Indian Space Policy 2023:

Objective:

• To promote and regulate space activities, enabling private entities to contribute to space exploration, satellite development, and related services while ensuring national interests.
• Strengthen India’s role in the global space economy, projected to reach $8 trillion by 2035.

Role of Non-Government Entities (NGEs):

• NGEs, including private companies, startups, and academic institutions, are allowed to undertake end-to-end space activities, such as satellite manufacturing, launch services, satellite operations, and ground station setups.
• Encourages NGEs to develop innovative applications like remote sensing, communication, and navigation services.

Role of IN-SPACe:

• The Indian National Space Promotion and Authorisation Centre (IN-SPACe), established under the Department of Space, acts as a single-window agency to promote, authorize, and regulate NGE activities.
• Facilitates access to ISRO’s infrastructure, technology transfer, and testing facilities for private players.

ISRO’s Focus:

• The Indian Space Research Organisation (ISRO) will shift from operational roles to focus on advanced R&D, human spaceflight, planetary exploration, and cutting-edge technologies.
• ISRO will support NGEs by sharing expertise and facilities.

NewSpace India Limited (NSIL):

• NSIL, ISRO’s commercial arm, will focus on commercializing space products and services, including satellite launches and technology transfers, to meet global demand.

Key Provisions:

Liberalized FDI: Allows up to 100% foreign direct investment in certain space activities (e.g., satellite manufacturing) under the automatic route, with conditions for launch vehicles and critical systems.

Data Access: Ensures NGEs can access and disseminate space data for commercial and societal applications, adhering to security protocols.

Ease of Doing Business: Simplifies regulatory processes for private entities, with IN-SPACe streamlining approvals and compliance.

Focus Areas:

• Encourage private launches and development of launch vehicles.
• Promote space-based applications for agriculture, disaster management, urban planning, and connectivity.
• Foster innovation through startups and academia, with an emphasis on skill development and capacity building.

Alignment with National Goals:

• Supports India’s vision of self-reliance (Atmanirbhar Bharat) by building a robust domestic space industry.
• Aims to create jobs, drive technological advancements, and enhance India’s strategic presence in space.

• The policy has spurred states like Tamil Nadu, Karnataka, and Gujarat to develop state-specific space policies to attract investments and create regional space hubs.
• It has catalyzed the growth of India’s private space sector, with startups like Skyroot Aerospace and Agnikul Cosmos successfully testing launch vehicles and raising significant funding.
• IN-SPACe’s role in guiding states and private entities aligns with the policy’s goal of creating a collaborative ecosystem.

Impact:

• The policy has opened the space sector to over 100 startups, with investments exceeding Rs 1,000 crore since 2020.
• It positions India to compete globally, leveraging ISRO’s legacy while fostering a vibrant private space ecosystem.
• Encourages public-private partnerships, enhancing innovation and scalability in space technologies.