Tamil Nadu Space Industrial Policy: A Strategic Boost to India’s Space Sector

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Tamil Nadu Space Industrial Policy Latest News

Recently, the Tamil Nadu Cabinet approved the State’s Space Industrial Policy to boost development and attract investments in the space sector, following the example of Karnataka and Gujarat.
The policy focuses on areas such as satellite manufacturing, launch services, and satellite-based applications. This move aligns with the Indian Space Policy 2023 introduced by the Union government to strengthen the national space ecosystem.

Goal: Provide a comprehensive framework to enable private participation and strengthen the space ecosystem.
Key Features
- IN-SPACe (Indian National Space Promotion and Authorization Center)
  - Acts as a single-window agency for authorizing space activities by non-government entities.
- ISRO’s Role
  - To focus on R&D, new technologies, and capacity building.
  - Operational activities (like satellite launches and commercial use) to be increasingly shifted to private sector.
- Private Sector Involvement
  - Encourages participation in end-to-end activities — from design and manufacturing to launch and data services.
- Department of Space
  - Retains overall policy direction and regulatory functions.

Presence of Key ISRO Facilities
- ISRO Propulsion Complex (IPRC), Mahendragiri (Tirunelveli):
  - Specializes in testing earth-storable and cryogenic engines, and undertakes R&D and technology development for launch vehicles.
- Upcoming Spaceport at Kulasekarapattinam (Thoothukudi):
  - Set to become India’s second spaceport, aimed at expanding the country’s satellite launch capacity.
Growing Ecosystem of Space Startups
- The State hosts multiple space tech startups engaged in:
  - Launch vehicle development
  - Reusable launch technologies
  - In-space refueling and manufacturing
  - Advanced satellite data fusion
Academic and Incubation Support
- Space Technology Incubation Centre (STIC) at NIT Tiruchi: Acts as a regional hub for ISRO-led innovation, fostering student and faculty-driven space technology projects.

Recommendation from IN-SPACe
- The Indian National Space Promotion and Authorisation Centre (IN-SPACe), under the Department of Space, advised the Tamil Nadu government to formulate a dedicated space policy.
- This is to promote and regulate Non-Government Entities (NGEs) in the sector.
Foundation in Existing Policy Framework
- Tamil Nadu had already launched an Aerospace and Defence (A&D) Industrial Policy three years ago, which identified space technology as a priority area for development and investment.
Strong Vendor Ecosystem
- The State has a well-established vendor base of over 250 suppliers catering to ISRO’s needs, indicating a mature and capable supply chain for space-related components and services.
Strategic Collaboration with IN-SPACe
- TIDCO (Tamil Nadu Industrial Development Corporation) signed an MoU with IN-SPACe to facilitate:
  - Manufacturing and service activities
  - Design and R&D efforts
  - Strategic electronics manufacturing
  - Development of space-grade components

Investment and Employment Goals
- The policy aims to attract ₹10,000 crore in investments over the next five years.
- It is expected to generate direct and indirect employment for nearly 10,000 people during this period.
Leveraging State Strengths
- The policy is designed to capitalize on Tamil Nadu’s strengths in electronics, precision manufacturing, and allied sectors.
- It also promotes the integration of space technologies in governance to improve public services across sectors such as:
  - Disaster management
  - Agriculture and fisheries
  - Transport and revenue
  - Health and municipal administration
Financial Incentives and Support
- Payroll Subsidy: Offered to companies involved in R&D or those setting up Global Capability Centres in the space sector.
- Space Bays: Selected regions will be notified as Space Bays, where firms investing below ₹300 crore can avail structured incentive packages.
- Industrial Housing Incentive: Developers of space industrial parks can avail 10% subsidy on the cost of residential facilities, capped at ₹10 crore over 10 years.
- Green Initiatives Support: Projects adopting green and sustainable practices will receive a 25% capital subsidy, capped at ₹5 crore.