- March 7, 2024
- Posted by: Hushai Cconsultants LLP
- Category: Uncategorized
Last month, the Cabinet approved the amended FDI norms to enhance ease of doing business and attract investments, and divided the satellite sub-sector into three different activities with defined limits for foreign investment in each such sector.
Accordingly, the following amendments have been made under Para 5.2.12 of the Consolidated FDI Policy Circular of 2020, as amended from time to time (FDI Policy):
Space Sector is opened up and Sectoral Cap is now upto 100%. That mean Foreign Direct Investment in the Sector is permitted now upto 100% subject to the following restrictions
| Sector/Activity | Sectoral Cap | Restrictions |
| Satellites-Manufacturing & Operation, Satellite Data Products, Ground Segment & User Segment |
100% |
Upto 49% Automatic Route.
Above 49% Approval Route |
| Launch Vehicles and associated systemsor subsystems, and (2) Creation of Spaceports for
launching and receiving Spacecraft |
100% |
Upto 49% Automatic Route.
Above 49% Approval Route |
| Manufacturing of components and systems/sub-systems for satellites, ground segment user segment |
100% |
Upto 100% Automatic Route.
|
Sector/Activities are further defined/clarified as Follows:
Category I
Satellites — Manufacturing & Operation: End-to-end manufacturing and supply of satellite and/or payload, establishing the satellite systems including control of in-orbit operations of the satellite &payloads.
Satellite Data Products: Reception, generation or dissemination of earth observation/remote sensing satellite data and data products including Application Interfaces (API).
Ground Segment & User Segment: Ground Segment means Supply of satellite transmit/receive earth stations including earth observation data receive station, gateway, teleports, satellite Telemetry, Tracking and Command(TTC) station, Satellite Control Centre (SCC), and User Segment: Supply of user ground terminals for communicating with the satellite, whichare not covered under the ground segment.
Category: II
Launch Vehicles and Associated Systems or Subsystems: A vehicle and its stages or components that is designed to operate in or place spacecraft with payloads or persons, in a suborbital trajectory, earth orbit or outer space.
Creation of Spaceports for launching and receiving Spacecraft: A spaceport (also referred as launch site) can be regarded as the base from which spacecraft are launched, and consisting of facilities involving devices for transportation to, from and via outer space.
Category III:
Manufacturing of Components and Systems/Subsystems for Satellites ground segment and user segment: Comprises the manufacturing and supply of the electrical, electronic and mechanical components systems/ subsystems for satellites, ground segment and user segment