The Indian government has announced a significant boost to the country’s private space sector by funding three start-ups under the Technology Adoption Fund (TAF) scheme.

The initiative, managed by the Indian National Space Promotion and Authorisation Centre (IN-SPACe), is designed to support Indian industry in absorbing, adapting, and commercialising advanced space technologies, thereby bridging the gap between research and operational deployment.

The selection was made following a multi-stage evaluation process conducted by an expert committee comprising representatives from ISRO, the Department for Promotion of Industry and Internal Trade (DPIIT), the Department of Science and Technology (DST), academia, and industry. IN-SPACe has confirmed that it will provide continued technical guidance, monitoring, and milestone-linked disbursement of funds to ensure successful implementation of the selected projects.

Among the three chosen firms, Bangalore-based Astrobase Space Technologies stands out with its ambitious plan to develop a high-thrust closed-cycle liquid rocket engine delivering 80 tons of thrust. This engine is designed to use Methane and Liquid Oxygen (Methane-LOX) propellants, a cleaner and more efficient alternative to the toxic Unsymmetric Dimethyl Hydrazine (UDMH) and Nitrogen Tetroxide combination used in ISRO’s Vikas engine.

The Vikas engine, developed in the 1970s with French collaboration, remains ISRO’s mainstay operational propulsion system and also delivers about 80 tons of thrust. Astrobase’s project, however, aims to create a reusable propulsion solution that could serve as a commercial engine for next-generation rockets.

The choice of Methane-LOX is particularly significant, as it mirrors the propellant combination used in SpaceX’s Raptor engine, which delivers over 280 tons of thrust. ISRO itself is working on a Methane-LOX engine producing 110 tons of thrust, underscoring the importance of this technology for future launch systems. Astrobase’s project, if successful, would mark a major leap in India’s private sector capability, aligning with global trends in reusable and environmentally sustainable propulsion.

The second start-up to receive funding is SatSure Analytics India, also based in Bengaluru. SatSure is developing Dhaarini, a Large Earth Observation Model (LOM) envisioned as India’s foundational AI platform for remote sensing applications.

Trained on diverse satellite and aerial datasets, Dhaarini is designed to generate actionable insights across agriculture, infrastructure, and disaster management. By enabling data-driven decision-making at a national scale, the platform could become a critical tool for government agencies, businesses, and research institutions.

The project reflects India’s growing emphasis on artificial intelligence and big data integration into space-based applications, ensuring that satellite imagery is transformed into practical solutions for pressing socio-economic challenges.

The third firm selected is TM2SPACE Technologies, headquartered in Hyderabad. TM2SPACE will develop an indigenous AI-powered star tracker system for satellites, a critical technology for ensuring precise pointing accuracy required for high-resolution imaging and communication missions.

The project will deliver two variants: StarSense Lite for CubeSats and StarSense Pro for satellites above 50 kg. These systems will incorporate advanced optics, electronics, and onboard algorithms to achieve high-precision attitude determination.

By indigenising this technology, TM2SPACE aims to reduce reliance on foreign suppliers and strengthen India’s autonomy in satellite navigation and control systems. The development of such star trackers is vital for enhancing the performance of Earth observation and communication satellites, particularly as India expands its satellite fleet for both civilian and defence applications.

While the quantum of funding and the timeline for technology development have not yet been disclosed, the announcement signals a strong commitment by the government to foster innovation in the private space sector.

The ₹500 crore TAF scheme is expected to play a pivotal role in bridging the gap between research and operational deployment, ensuring that promising technologies are not confined to laboratories but reach commercial and strategic applications.

By supporting start-ups working on propulsion, artificial intelligence, and satellite navigation, IN-SPACe is laying the foundation for a diversified and resilient space ecosystem in India. This initiative also complements ISRO’s ongoing efforts in advanced propulsion, reusable launch vehicles, and AI-driven applications, creating a synergy between public and private sector innovation.

The selection of Astrobase, SatSure, and TM2SPACE highlights the government’s recognition of the private sector’s role in shaping India’s future in space exploration and commercialisation. With projects ranging from next-generation rocket engines to AI-driven Earth observation and satellite navigation systems, these start-ups represent the cutting edge of India’s space technology ambitions.

Their success could significantly enhance India’s competitiveness in the global space economy, while also contributing to national priorities such as sustainability, disaster resilience, and strategic autonomy.

Agencies