The Centre has launched two new incentive schemes to accelerate private participation in India’s space sector, offering financial support ranging from 30 per cent to 100 per cent for launch services, access to ISRO facilities, technology transfers and satellite data.

The initiatives, introduced by the Department of Space (DoS) and to be implemented through the Indian National Space Promotion and Authorisation Centre (IN-SPACe), are designed to reduce entry barriers, improve the global competitiveness of Indian space companies and strengthen the country’s commercial space ecosystem.

Rs 800 Crore Scheme to Boost Launch Services

The larger of the two programmes, the Launch Services Price-support Scheme (LSPS), has been allocated Rs 800 crore over five years until June 2031.

The scheme aims to reduce launch costs for Indian space companies and position India as a more competitive global launch destination.

IN-SPACe Chairman Pawan Goenka said the objective is to make Indian launches more affordable in the international market.

“The idea is to make the launches competitive. Therefore, we are trying to defray the cost of launch, thereby making the launch cost globally competitive. The ultimate beneficiary will be the satellite launch,” Goenka told The Times of India.

Four Categories of Financial Support

Under Category A, eligible non-government entities (NGEs), government organisations and launch vehicle providers can receive financial assistance of up to 50 per cent for using ISRO and Department of Space launch facilities.

Category B provides a subsidy of 30 per cent of contractual launch costs, or up to USD 3,000 per kilogram, whichever is lower, for launches using Indian small launch vehicles carrying satellites, experiments or payloads weighing up to 500 kilograms.

The benefit will be available to satellite owners and operators, including those using launch vehicles developed by Indian private companies.

Goenka said the subsidy would also apply to launches conducted by Indian companies such as Skyroot from Indian launch sites.

“It will be applicable to Vikram also. Any satellite launch by an Indian company… from Indian soil… we will directly pay the satellite guys USD 3,000 per kg,” he said.

Category C offers the highest level of support, with the government funding 100 per cent of costs for repurposed upper-stage platforms carrying payloads of up to 120 kilograms.

The assistance under this category is capped at USD 13,000 per kilogram and limited to four missions. It is intended for NGEs, government entities and launch vehicle providers.

Under Category D, satellites weighing up to 100 kilograms launched aboard PSLV, GSLV and LVM3 missions will receive a subsidy of 30 per cent of contractual launch costs, or up to USD 3,000 per kilogram, whichever is lower.

Separate Scheme to Lower Technology Costs

Alongside launch incentives, the Department of Space has introduced a three-year Price Support Scheme, which will remain in force until February 2029.

The programme is aimed at reducing the cost of accessing India’s space infrastructure, technology and satellite data for domestic companies.

The first component provides financial support of up to 50 per cent for the use of Department of Space and IN-SPACe facilities, including access to technical expertise.

The second offers a 30 per cent subsidy on Technology Transfer Fees (TTF) for technologies licensed from ISRO, lowering costs for companies seeking to commercialise government-developed technologies.

The third component provides a 50 per cent subsidy on standard Earth Observation data and related products, making satellite imagery and geospatial datasets more affordable.

Focus on Expanding Space Applications

The subsidised Earth Observation data is expected to support Indian companies developing applications in sectors such as agriculture, urban planning, disaster management, climate services and other downstream geospatial industries.

The two schemes are part of the Centre’s broader strategy to encourage greater private sector participation in the space industry, strengthen India’s commercial launch capabilities and expand the country’s role in the global space economy.

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