New Delhi: India’s space technology sector is set for a transformative boost with the launch of the Technology Adoption Fund (TAF), a Rs 500 crore initiative aimed at fostering innovation and commercializing cutting-edge technologies in the space sector.
The fund will provide partial financial support to non-governmental entities in India (NGEi) to develop early-stage technologies (TRL-3/4) into commercially viable products (TRL-8/9). Startups and MSMEs will receive up to 60 per cent of project costs, while large industries can secure 40 per cent, with a maximum funding cap of Rs 25 crore per project.
The Indian Space Research Organisation (ISRO) has long been at the forefront of the country’s advancements in space technology. However, recent space sector reforms have paved the way for private enterprises to contribute significantly to the ecosystem. The Technology Adoption Fund aims to reduce import dependence, foster domestic capabilities, and democratize access to critical space technologies.
As mandated in the Indian Space Policy, the Indian National Space Promotion and Authorization Center (IN-SPACe) will work closely with industry stakeholders to promote space activities and position India as a global hub for space-based products and services. IN-SPACe envisions fostering commercialization in the space sector by encouraging NGEi to develop space technologies that meet both domestic and global demand.
Funding Structure and Intellectual Property Rights
Under the TAF scheme, any intellectual property (IP) developed will be owned by the respective NGEi. However, any licensing of the IP will require prior approval from IN-SPACe. Recipients of the fund will be required to commercialize their innovations either by producing the developed product themselves or by licensing their IP to third parties. Additionally, they will share revenue with IN-SPACe as per the guidelines outlined in the scheme.
Eligible entities for the TAF include companies incorporated under the Companies Act, partnership firms under the Limited Liability Partnership Act, trusts under the Indian Trusts Act, and other registered associations or bodies under relevant Indian statutes. The scheme is open for five years from the date of issue of the call for proposals or until funds are fully utilized, whichever comes earlier.
Categories and Proposal Evaluation
Proposals under the TAF must contribute to the Indian space economy in at least one of the following categories:
- Earth Observation
- Navigation Satellites
- Communication Satellites
- Space-Based Ground Applications
- Launch Vehicle Segment
- Human Spaceflight / Space Tourism
- Space Situational Awareness & In-Orbit Economy and Exploration
- Ground Segment
Applications must be submitted via the IN-SPACe Digital Platform (IDP), where NGEi can also access the scheme’s guidelines. An Expert Committee will review and assess applications based on criteria such as commercial viability, domestic and international demand, socio-economic impact, technical feasibility, innovation potential, maturity level, business plan, financial capability, and intellectual property portfolio.
Industry Leaders Welcome the Initiative
Speaking on the launch of the fund, Pawan K Goenka, Chairman of IN-SPACe, emphasized the importance of supporting companies in the transition from early-stage development to commercialization. “We have designed this fund to help innovators bridge the gap between early-stage development and commercialization. This support will enable companies to refine their technologies, enhance production processes, and meet market demands both within India and abroad. Our focus is on enabling practical solutions that can be quickly integrated into the space ecosystem.”
The scheme’s guidelines highlight the necessity for NGEi to maximize its intellectual property assets. “NGEi (Non-Government Entities in India) shall capitalize their intellectual property (IP) and commercialize their innovations by productionizing the product developed under this scheme on their own, and/or by licensing their IP to third parties,” the guidelines state.
Meanwhile, Lt. Gen. AK Bhatt (retd.), Director General of the Indian Space Association (ISpA), welcomed the initiative, recognizing its critical role in empowering private players in the space sector. “With India reaffirming its role in the global space race, private space companies and startups are playing a pivotal role in driving innovation and technological advancements in the sector. We are witnessing a surge of pioneering startups developing groundbreaking solutions for the space industry. But to turn these concepts into practical products that can be offered to a new marketplace, there must be sufficient funding, especially from government institutions at this specific stage. The launch of this forward-looking fund by IN-SPACe today is a major step toward enabling start-ups to accelerate their journey from concept to commercialization We welcome this initiative.”
However, it should be noted that late last year, the Cabinet, Chaired by PM Narendra Modi, sanctioned the establishment of a Rs 1,000 crore Venture Capital (VC) Fund to accelerate the development of space startups under the guidance of IN-SPACe.
The introduction of the Technology Adoption Fund marks a significant milestone in India’s space sector, reinforcing the government’s commitment to bolstering private sector participation and solidifying India’s position as a global space powerhouse.
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