The Tamil Nadu Space Tech Fund is driven by the objective of strengthening the
State’s space-technology innovation ecosystem by fostering advanced research and development, enabling technology validation and supporting the commercialisation of market-ready space-tech solutions.
The initiative aims to position Tamil Nadu as a national leader in space-technology innovation.
The Fund supports startups working across key space-technology domains,
including satellite systems, launch technologies, ground infrastructure, space data analytics, robotics, artificial intelligence, propulsion systems and related
applications.
The scheme operates on a 1:1 matching model, wherein startups are required to demonstrate confirmed external funding from a third-party source such as angel investors, venture capital firms, institutional partners (or) corporates. The fund will match this amount, subject to a cap of Rs.50 lakh.
All eligible applications will be evaluated by an expert committee, which will
recommend startups for support under the scheme.
Funding will be provided in the form of equity, based on the committee’s recommendations.
Disbursement of funds will be milestone-based and released in tranches, subject to verification and compliance with the scheme guidelines.
Eligible startups must be registered in Tamil Nadu and recognised by the
Department for Promotion of Industry and Internal Trade (DPIIT), Government of
India.
Applicants should be engaged in the innovation, development, or
improvement of products, processes or technologies with strong commercial
potential in the space-tech domain. The fund may be utilised for prototype
development, product engineering, technology validation, testing or other activities leading to commercial deployment, according to a statement.
Entities formed by splitting or reconstructing an existing business or those
operating as subsidiaries, joint ventures or associates of other companies are not eligible. Indian subsidiaries of foreign or multinational companies will not be
considered. Applicants must not have any pending dues with government agencies and should not have been blacklisted by any government body in India.
The Government of Tamil Nadu has allocated Rs. 10 crore for FY 2025–26 towards the implementation of the Tamil Nadu Space Tech Fund.
