Sunday, April 20, 2025

Tamil Nadu Cabinet clears Space Policy to Attract ₹10,000 Crore Investment and 10,000 Jobs


CHENNAI:
rawing inspiration from Florida’s famed Space Coast, the Tamil Nadu government has unveiled a policy to establish a ‘Space Bay’ across four southern districts—Madurai, Thoothukudi, Tirunelveli, and Virudhunagar. The initiative aims to attract ₹10,000 crore (approx. $1.2 billion) in investments over the next five years and generate 10,000 jobs.

Addressing reporters after the Cabinet meeting that approved the Tamil Nadu Space Industrial Policy, 2025, Minister Rajaa stated that the policy is designed to equip young people with industry-ready skills.

At the heart of this strategy is the upcoming Kulasekarapattinam spaceport, currently under construction. The facility, being developed by the Indian Space Research Organisation (ISRO), is expected to focus on launching small satellites—an increasingly vital segment in the global space economy. Building on this development, Tamil Nadu’s Space Industrial Policy outlines an ambitious framework to foster a robust regional space ecosystem.

Minister Rajaa added that the policy will reimburse 50% of the expenditure incurred by firms during the investment period for activities such as registering patents, copyrights, trademarks, and geographical indicators.

Citing the example of India’s first 3D-printed rocket, Agnibaan, launched by IIT Madras startup Agnikul Cosmos, he said that startups and companies with an annual turnover of ₹25 crore or less will be eligible to participate in the space ecosystem. The Tamil Nadu government will offer financial support to space startups undertaking projects within the state.

Additionally, space sector projects exceeding ₹300 crore will be eligible for a Special Structured Package of Incentives, as per the Tamil Nadu Industrial Policy for Sunrise sectors.

Importantly, the state's policy aligns with the Government of India’s Indian Space Policy 2023, which has paved the way for private enterprise in space exploration and services. While ISRO continues to spearhead major missions, the central government is increasingly leveraging the capabilities of startups and private firms to boost innovation and reduce costs—creating a competitive environment in which states like Tamil Nadu are positioning themselves as key players.

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