New Delhi: The Union Cabinet on Wednesday eased Foreign Direct Investment (FDI) norms in the space sector by allowing up to 100 per cent overseas investment under the automatic route in certain activities like making components for satellites.
Women safety scheme to continue
– The Cabinet also okayed a plan of the MHA for continuation of implementation of umbrella scheme on safety of women at a cost of Rs 1,179.72 crore during 2021-22 to 2025-26.
– Out of the total project outlay, Rs 885.49 crore will be provided by the Centre and Rs 294.23 cr will be funded from Nirbhaya Fund.
The proposed reforms prescribe liberalised entry route and provide clarity for FDI in making satellites, launch vehicles and associated systems or subsystems, creation of spaceports for launching and receiving spacecraft and manufacturing of space-related components and systems.
Presently, FDI in the space sector is allowed up to 100 per cent in the area of satellite establishment and operations through government route only.
By changing the current policy, the government has allowed up to 74 per cent FDI under automatic route in satellites-manufacturing and operation, satellite data products, and ground and user segments.
Beyond this limit, government approval will be required in these areas for FDI. Up to 49 per cent FDI is allowed through the automatic route for launch vehicles and associated systems or subsystems, creation of spaceports for launching and receiving spacecraft. Beyond 49 per cent, FDI in these activities would require government approval.
