AMN
The Government of India has notified amended rules under the Foreign Exchange Management Act to operationalise its decision to allow up to 100 per cent FDI for the space sector.
As per the notification issued by Ministry of Finance, 100 per cent Foreign Direct Investment has been allowed for manufacturing and operation of satellites, satellite data products and ground segment and user segment, out of which up to 74 per cent will be through the automatic route and government approval will be required for investment beyond 74 per cent.
Finance Ministry said, automatic FDI has also allowed up to 49 per cent for launch vehicles and associated systems or subsystems, and creation of spaceports for launching and receiving spacecraft. Government nod will be required for investments beyond 49 per cent.
The Ministry said, manufacturing of components and systems or sub-systems for satellites, ground segment and user segment will be fully under the 100 per cent automatic route. The notification said, the investee entity shall be subject to sectoral guidelines as issued by the Department of Space from time to time. The new rules has come into effect from 16th of this month. In February, the Union Cabinet had approved the amendment to the FDI policy for the space sector, allowing up to 100 per cent investment in certain categories.