New Delhi: India has signed its first fully commercial earth observation satellite deal with a private consortium, under a new public-private partnership framework designed to let Indian companies build, launch and run their own satellite constellations. The framework, drawn up by the Indian National Space Promotion and Authorisation Centre (IN-SPACe), was detailed by Jitendra Singh, Minister of State for Science and Technology, in a written reply to the Lok Sabha on Wednesday.
The idea behind the framework is straightforward: rather than relying solely on government-built satellites, private firms, start-ups and research institutions can now design, build, own and operate earth observation constellations from start to finish. IN-SPACe will act as the single-window authority overseeing all such projects, handling approvals and support for private players entering the space sector.
What private companies are now allowed to do
Under the framework, non-government entities can take on the full satellite supply chain themselves. That includes manufacturing satellites in India, from ultra-high resolution optical satellites and multispectral satellites to hyperspectral and radar-imaging satellites. Companies can also use Indian launch vehicles, build their own ground stations and mission control centres, and sell data products and analytics to government and commercial customers.
The government has also opened the door to academic partnerships, allowing universities and research institutes to work alongside private firms on capacity building and new applications for the data these satellites collect.
The funding on offer
To get private investment flowing, the government has put several financial schemes in place. These include a Rs 1,000 crore Antariksh Venture Capital Fund and a Rs 500 crore Technology Adoption Fund, which covers up to 60 per cent of project costs for start-ups and smaller firms, and up to 40 per cent for larger companies, capped at Rs 25 crore per project.
A separate Seed Fund Scheme offers grants of up to Rs 1 crore to start-ups working on applications such as agriculture, disaster management and marine monitoring. There is also a Rs 500 crore fund for shared technical facilities, along with state-level support for space manufacturing clusters, technology transfers from ISRO, and free technical guidance from IN-SPACe’s resident experts. All of this sits within the broader Indian Space Policy of 2023, which sets the rules for private participation in the sector.
The first deal: a 12-satellite constellation
IN-SPACe has already signed its first agreement under the new framework, with a consortium called Allied Orbits Private Limited. The group is led by PixxelSpace India, alongside Dhruva Space, PierSight Space and Satsure Analytics India.
The consortium will build, own and run a constellation of 12 satellites, combining panchromatic, multispectral, hyperspectral and radar imaging capabilities, backed by ground infrastructure built entirely in India. The project is expected to cost more than Rs 1,200 crore, with all the money coming from the consortium itself. Every satellite will be manufactured in India and launched on Indian rockets, with mission control also based domestically. The constellation is due to be up and running by 2029.
Where the data will be used
Once operational, the satellites are expected to feed into several areas of daily governance and planning. In disaster management, they will provide near-real-time imagery for early warnings and damage assessment. In agriculture, the data will help track crop health, estimate yields and detect soil and water stress, feeding into existing farmer welfare schemes.
The imagery will also support climate monitoring, tracking changes in land use, glaciers and coastlines, and will help with urban planning by improving maps of infrastructure and land records. The radar and high-resolution optical satellites are expected to support border surveillance too, offering all-weather, day-and-night monitoring and cutting India’s reliance on foreign satellite imagery.
Officials say the broader aim is to build a self-reliant, data-secure earth observation sector, with private companies driving manufacturing and innovation while the government acts as regulator and, in many cases, the first customer for the data and services produced.