Prime Minister Narendra Modi-led Union Cabinet on Wednesday took a series of key decisions, which included the approval for amendments to the existing Foreign Direct Investment (FDI) policy on space sector.
“Under the amended FDI policy, 100% FDI is allowed in space sector. The liberalised entry routes under the amended policy are aimed to attract potential investors to invest in Indian companies in space,” said Union Minister Anurag Thakur.
The amended policy extends the facility of up to 74% FDI under the automatic route for satellite manufacturing and operation, satellite data products and ground/user segment. Beyond 74%, these activities are under government route.
Up to 49% FDI under the automatic route will be allowed for launch vehicles and associated systems or subsystems, and creation of spaceports for launching and receiving spacecraft. Beyond 49%, these activities will be under government route. Mr. Thakur said up to 100% FDI under the automatic route would be permitted for manufacturing of components and systems/sub-systems for satellites, ground segment and user segment.
“This increased private sector participation would help to generate employment, enable modern technology absorption and make the sector self-reliant. It is expected to integrate Indian companies into global value chains. With this, companies will be able to set up their manufacturing facilities within the country...,” he said.
The satellites sub-sector has been divided into three different activities with defined limits for foreign investment in each such sector. As per the existing FDI policy, foreign investment is allowed in establishment and operation of satellites via government-approval route only.
Another decision is related to the continuation of Flood Management and Border Areas Programme scheme with ₹4,100-crore outlay for five years from 2021-22 to 2025-26. Under its flood management component with an outlay of ₹2,940 crore, Central assistance will be provided to States.
The pattern of funding to be followed is 90% (Centre): 10% (State) for special category States (eight north-eastern States and hilly States of Himachal Pradesh, Uttarakhand, and union territory of Jammu and Kashmir) and 60% (Centre): 40% (State) for general/ non-special category States. The River Management and Border Areas component has an outlay of ₹1,160 crore.
The Union Cabinet also approved the Ministry of Home Affairs’ proposal for continuation of the implementation of “Safety of Women” umbrella scheme at ₹1,179.72 crore for the period 2021-22 to 2025-26. It will include scaling up of 112 helpline; setting up of six cyber forensic science labs in Pune, Kamrup (Assam), Bhopal, Chandigarh, Kolkata and Delhi; and a National Forensic Data Centre. Every year, about 5,000 personnel will be trained to prevent crimes against women and children.
Source: The Hindu