The Union Cabinet, chaired by the Prime Minister Narendra Modi approved several projects across various sectors on Thursday in New Delhi.
Union minister Ashwini Vaishnaw announced that the Cabinet has approved the establishment of a Rs 1,000 crore Venture Capital Fund for the space sector, under the aegis of IN-SPACe and two separate projects for the Ministry of Railways, with a combined estimated cost of Rs 6,798 crore.
Promoting startups in the space sector
“The Union Cabinet today approved the setting up of Rs 1,000 crore Venture Capital Fund for promoting startups in the space sector,” Vaishnaw said.
He said that the deployment period for the proposed Venture Capital (VC) fund is planned to extend up to five years from the start of its operations.
The fund is expected to assist around 40 startups, driving the growth of the private space industry. The average annual deployment could range between Rs 150 crore and Rs 250 crore, depending on investment opportunities and funding needs.
According to an official release, the fund is strategically designed to advance India’s space sector, aligning with national priorities and fostering innovation and economic growth through the following key initiatives:
- Capital Infusion: Capital infusion to create a multiplier effect by attracting additional funding for later-stage development, thereby instilling confidence in private investors
- Retaining Companies in India: Retention of space companies domiciled within India & countering the trend of Indian companies domiciling abroad
- Growing Space Economy: Expanding economic activities related to space, including the development and production
- Accelerating Space Technology Development: Accelerate private space industry’s growth to meet the goal of a five-fold expansion of the
Indian Space Economy in next ten years - Driving Economic Growth and Job Creation: Drive advancements in space technology and strengthening India’s leadership through private sector participation
- Boosting Globa! Competitiveness: Driving competitiveness forward
- Supporting Atmanirbhar Bharat
- Creating a Vibrant Innovation Ecosystem
- Ensuring Long-Term Sustainability
- The fund aims tostrategically position India as one of the leading space economies
“The fund aims to address the critical need for risk capital, as traditional lenders are hesitant to fund startups in this high-tech sector. With nearly 250 space startups emerging across the value chain, timely financial support is crucial to ensure their growth and prevent talent loss overseas,” the release said.
“The proposed government-backed fund will boost investor confidence, attract private capital, and signal the government’s commitment to advancing space reforms. It will serve as an Alternative investment Fund under Sebi regulations, providing early-stage equity to startups and enabling them to scale for further private equity investments,” it added.
Two environment friendly railway projects
The Cabinet Committee on Economic Affairs (CCEA) has given the green light to two railway projects with a combined estimated cost of approximately Rs. 6,798 crore, the Information and broadcasting minister said. This development is expected to contribute to the socio-economic growth of the region.
Two approved projects include:
- Doubling of Narkatiaganj-Raxaul-Sitamarhi-Darbhanga & Sitamarhi-Muzaffarpur Section covering 256 kms
- Construction of a new line between Errupalem and Namburu via Amaravati covering 57 kms to be completed in 5 years.
Together, the two projects will cover eight districts across three states – Andhra Pradesh, Telangana, and Bihar – and will expand the existing Indian Railways network by approximately 313 kilometers.
Both projects are expected to be completed within a five-year timeframe and will create direct employment opportunities for about 106 lakh human-days.
The doubling of the Narkatiaganj-Raxaul-Sitamarhi-Darbhanga & Sitamarhi-Muzaffarpur Section will enhance connectivity to Nepal, North-east India, and border areas, facilitating the movement of both passenger and goods trains.
The 57-km track new railway line to Andhra Pradesh’s capital city, Amaravati will cost Rs. 2,245 crore. The new rail line project, Errupalem-Amaravati-Namburu, will pass through the NTR Vijayawada and Guntur districts of Andhra Pradesh and the Khammam district of Telangana.
“New Line project will provide connectivity to approx. 168 villages and about 12 Lakh population with 9 new stations. Multi-tracking project will enhance connectivity to Two Aspirational Districts (Sitamarhi and Muzaffarpur) serving approx. 388 villages and about 9 lakh population,” the CCEA said in a release.
According to the government release:
- These Railway lines are essential routes for transportation of commodities such as agriculture products, fertilizer, coal, iron ore, steel, cement, etc.
- The capacity augmentation works will result in additional freight traffic of magnitude 31 MTPA (Million Tonnes Per Annum).
- The Railways being an environment friendly and energy efficient mode of transportation, will help both in achieving climate goals and minimizing logistics cost of the country, lower CO2 emissions (168 Crore Kg) which is equivalent to plantation of 7 Crore trees.
- The projects are result of
PM-Gati Shakti National Master Plan for multi-modal connectivity which have been possible through integrated planning and will provide seamless connectivity for movement of people, goods and services.The project was originally proposed during the previous TDP regime (2014-19) and received approval from the Railway Board.