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India’s emerging space sector has sought a liberal FDI policy and production-linked incentives similar to the defense industry in the interim budget to be presented by the government next week.
Industry body Indian Space Association (ISPA) has called for GST exemption for satellites, launch vehicles and ground equipment manufacturing, lower tax rates for external commercial borrowings and reduction in satellite sector withholding tax from 10% to 2% in view of low profits. Have also demanded. Margin.
Awais Ahmed said, “Our hope is to enable a more liberal FDI (foreign direct investment) policy in the space sector. Till now, even one per cent FDI has to go through the government approval route and that takes several months.” the founder and CEO of Pixxel, a Bengaluru-based start-up, told PTI.
“There is 74 per cent FDI through the automatic route in the defense sector. Apart from that, you have to go for the government route. Matching what is there at least for the defense side will really help in opening up the flow of outward capital to Indian Will be helpful to space companies trying to build more things at scale,” Ahmed said.
He also sought a production-linked incentive (PLI) scheme for space manufacturing.
“We need to catalyze and innovate more by getting suppliers and people to manufacture a variety of different things for space technology – be it components, satellites, cameras, trackers. This can only be done through the PLI scheme. It would be possible to innovate or accelerate that. Enables that to happen,” Ahmed said.
ISPA also sought a PLI scheme for space-grade components on the lines of a similar scheme for drones.
The industry body also wants the government to commit to purchasing and adopting space technology solutions in sectors like agriculture, disaster management.
ISPA Director General Lieutenant General (Retd) AK Bhatt said, “Now, to take forward this promising industry and promote innovation, it is important for the government to develop a comprehensive regulatory framework and address the existing fiscal and taxation challenges “
The association has also demanded reasonable spectrum usage charge (SUC) as a percentage of adjusted gross revenue (AGR) for satellite services allocated non-auctioned spectrum under the new Telecom Act, 2023.
ISPA said satellite operators will need to optimize tax impact and capital subsidies on infrastructure investments as well as additional funds for facilities in remote areas to boost manufacturing capabilities, infrastructure advancement and increase downstream space offering. Lump sum fee for subsidy and 25% depreciation on license fee should be allowed. India’s private space industry.
Space sector regulator IN-SPACe has estimated the country’s space economy to grow to $44 billion by 2033.
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Published: Jan 24, 2024, 04:23 PM IST
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