Space Startups Face Testing Hurdles, Need Regulatory Push: ISpA Chief

ENA Sectors 2024-11-06 16:31:15 New Delhi, Nov 6 (KNN) Indian startups in the space tech sector face significant challenges, particularly a lack of affordable, accessible testing facilities, according to Lt Gen (retired) AK Bhatt, Director General of the Indian Space Association (ISpA). Speaking at the Indian Space Conclave 2024, Bhatt emphasized that the sector urgently needs comprehensive regulatory support to meet its growth aspirations. The availability of testing facilities at competitive rates is crucial, Bhatt stated, highlighting that high costs and limited testing options are forcing startups to conduct operations at multiple sites across the country. This logistical challenge, he explained, adds an unnecessary operational burden, particularly for smaller enterprises. Bhatt suggested that establishing centralized facilities in major tech hubs like Bangalore, Chennai, or Hyderabad could alleviate these constraints. These locations, he noted, have a strong industrial base that could support space tech firms, reducing the need to transport equipment across the country for testing. A recent report by The Economic Times on November 4 noted that India hosts nearly 200 space-focused startups, though many struggle with manufacturing critical components. Regulatory advances have been made in recent years, such as foreign direct investment guidelines and the Indian Space Policy introduced in 2023, yet Bhatt argued that more is needed. We will ultimately need a space activity bill, defining the regulator and covering critical aspects like insurance, Bhatt added, pointing to the importance of a cohesive regulatory framework. This legislation, he argued, would protect startups and provide them with a clearer operational path. India is also targeting ambitious growth within the global space economy. Bhatt cited the rapid expansion of companies like Skyroot Aerospace, which has grown from 50 to 250 employees, as a sign of the sector's potential. The government aims to boost Indias share of the space economy from 2 per cent to 10 per cent, a goal requiring substantial infrastructure and policy support. Supporting this vision, the Union Cabinet recently approved a Rs 1,000-crore venture capital fund under the IN-SPACe program to back space sector startups. The fund, with a deployment period of up to five years, will provide Rs 150-250 crore annually, depending on market conditions and investment needs. Bhatt emphasized that aligning demand for space applications across ministries, an initiative launched by the Prime Minister in 2017, remains vital for sustained growth. The aspirations of the industry will continue, he said, urging for demand and supply coordination to ensure that Indias space sector reaches its full potential. (KNN Bureau) 39824 https://knnindia.co.in/news/newsdetails/sectors/space-startups-face-testing-hurdles-need-regulatory-push-ispa-chief 2024-11-06 16:31:15 knnindia.co.in Space Startups Face Testing Hurdles, Need Regulatory Push: ISpA Chief