IN-SPACe offers Rs 67 crore to four space start-ups for home-grown tech
By Aditi KulkarniEducation Writer, Peepals Bharat
Representative image: WikiImages / Pixabay
IN-SPACe has offered Rs 67.15 crore under its Technology Adoption Fund to Manastu Space, InspeCity, VyomIC and MumbaiSemi to develop indigenous space technology.
What Happened
IN-SPACe, the government body that authorises and promotes private space activity in India, has offered a combined Rs 67.15 crore to four Indian space technology companies under its Technology Adoption Fund, according to a PTI report dated 31 October 2026. The companies are Manastu Space, InspeCity Space Laboratories, VyomIC and MumbaiSemi. The money is meant to help them develop technologies that India currently imports or does not yet make at home, from electric thrusters for small satellites to precision clocks. The support is linked to milestones rather than given as an equity investment, and it follows IN-SPACe's first round of selections under the fund in June 2026.
Key Facts
- Total offered: Rs 67.15 crore to four companies under the Technology Adoption Fund (TAF).
- Manastu Space: Rs 22.08 crore, the largest share, for an iodine-based Hall effect thruster for small satellites, which reports say would be a first for an Indian company.
- VyomIC (Bengaluru): Rs 12.55 crore towards a Rs 20.12 crore project on precision atomic clocks.
- InspeCity Space Laboratories: Rs 21.18 crore for a refuellable propulsion system for microsatellites, according to one report.
- MumbaiSemi: selected; its amount was not given in reports.
- Nature of support: milestone-linked government funding, monitored against the scheme's requirements, not equity.
- Scheme: launched in February 2025 with a Rs 500 crore corpus; first selections in June 2026 included Astrobase Space Technologies, SatSure Analytics India and TM2SPACE Technologies.
Why It Matters
IN-SPACe exists to help India's private space companies grow. A common hurdle for start-ups is funding the long, expensive stage between a lab prototype and a product that can fly. The Technology Adoption Fund is designed for that gap: it shares the cost of turning a technology into something ready for use, in return for meeting agreed milestones.
The four projects show what the fund is targeting. A Hall effect thruster uses electricity to push charged particles out at high speed, gently but efficiently moving a satellite in orbit. Atomic clocks are at the heart of navigation satellites, which depend on extremely precise timing; reports say the technology could also serve satellite constellations and deep-space missions. Refuellable propulsion could extend the working life of small satellites.
For entrepreneurs, the round is also a sign that government money is flowing to start-ups outside the biggest names. Milestone-based grants do not dilute founders' ownership, which makes them especially valuable for young companies.
For students and engineers, these projects represent jobs in propulsion, electronics, precision timing and semiconductor design, fields that India's space industry needs to build.
Peepals calculation: Manastu's Rs 22.08 crore is about a third of the Rs 67.15 crore total (22.08 ÷ 67.15 ≈ 0.33). VyomIC's grant covers about 62% of its Rs 20.12 crore project (12.55 ÷ 20.12 ≈ 0.62). This round uses about 13% of the scheme's Rs 500 crore corpus (67.15 ÷ 500 ≈ 0.13). Our calculation from the reported figures.
| Company | Offered | Technology |
|---|---|---|
| Manastu Space | Rs 22.08 crore | Iodine-based Hall effect thruster |
| InspeCity Space Laboratories | Rs 21.18 crore (one report) | Refuellable microsatellite propulsion |
| VyomIC | Rs 12.55 crore | Precision atomic clocks |
| MumbaiSemi | Not reported | — |
Impact
Short-term: The four companies can move ahead with development and testing, drawing government funds as they hit agreed milestones.
Long-term: If the projects succeed, India will be able to make key satellite components at home, cutting imports and strengthening its private space industry.
Who is affected: The four companies, their founders and staff, other space start-ups that may apply to the fund, satellite makers who need these components, and engineers seeking careers in the sector.
Key Takeaway
IN-SPACe has offered Rs 67.15 crore to four start-ups to build thrusters, atomic clocks and propulsion systems in India, using milestone-linked grants rather than equity.
Questions and Answers
What is IN-SPACe's Technology Adoption Fund?
It is a Rs 500 crore scheme, launched in February 2025, that gives milestone-linked funding to Indian companies developing space technologies, to help them move from prototype to usable product.
Which companies received funding in the latest round?
Manastu Space, InspeCity Space Laboratories, VyomIC and MumbaiSemi, with Rs 67.15 crore offered in total.
How much did Manastu Space get and for what?
Rs 22.08 crore, the largest share, to develop an iodine-based Hall effect thruster for small satellites.
Is this an equity investment by the government?
No. The support is milestone-linked funding monitored against the scheme's requirements, not an ownership stake.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Aditi Kulkarni, Education WriterCovers Education and more for Peepals Bharat. All stories by Aditi Kulkarni
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Aditi Kulkarni is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
