Tamil Nadu Launches Space Industrial Policy 2025

Tamil Nadu Cabinet has approved the Space Industrial Policy 2025, aiming to transform the state into a key hub for space economy, attract investments worth ₹10,000 crore, and create 10,000 high-value jobs across manufacturing, R&D, and space-tech services.

Key Objectives

• Attract ₹10,000 crore investment over the next five years.
• Create 10,000 direct and indirect employment opportunities.
• Integrate space technologies into governance for sectors like: Disaster management, fisheries, agriculture, transport, revenue, health, and municipal administration.
• Promote R&D, manufacturing, and downstream applications in space technology.

Three Pillars of Policy:

• Attracting Investments in Tamil Nadu’s space sector.
• Creating High-Value Jobs for youth.
• Building a Skilled Workforce in space technologies and services.

Key Features & Incentives

1. Incentive Mechanism:

• Payroll subsidy for R&D and Global Capability Centres (GCCs).
• Space Bays:
  • Designated industrial clusters for investments below ₹300 crore.
  • Located in Madurai, Thoothukudi, Tirunelveli, and Virudhunagar.
  • Tailored incentives for startups and MSMEs.

2. Infrastructure Support:

• Industrial housing incentive:
  • 10% subsidy on cost of residential facilities within parks (up to ₹10 crore over 10 years).
• Green initiatives:
  • 25% capital subsidy (up to ₹5 crore) for sustainable practices.

3. Ease of Doing Business:

• Single-window clearances for MSMEs (fast-tracked and no-cost).
• 50% subsidy on clearance charges for space companies.
• Large-scale project facilitation via TIDCO and Guidance Tamil Nadu portal.

Strategic Foundations and Partnerships

1. Government Collaboration:

• Draft policy created based on recommendation from IN-SPACe (Indian National Space Promotion and Authorization Centre).
• MoU between TIDCO and IN-SPACe to support:
  • Manufacturing, design, R&D
  • Strategic electronics
  • Space-grade components

2. Institutional Support:

• NIT Trichy hosts Space Technology Incubation Centre (STIC) for ISRO’s projects in South India.

Tamil Nadu’s Existing Strengths in Space Ecosystem:

• Over 250 vendors already supporting ISRO’s supply chain.
• ISRO’s second spaceport is being set up at Kulasekarapattinam (Thoothukudi).
• Proximity to:
  • ISRO Propulsion Complex (IPRC), Mahendragiri
  • Vikram Sarabhai Space Centre (VSSC) and Liquid Propulsion Systems Centre (LPSC) in Thiruvananthapuram
• Strong base in:
  • Heavy engineering
  • Precision manufacturing
  • Electronics

Key Private Players in Tamil Nadu:

• LMW, L&T, Aerospace Engineers, Agnikul Cosmos, GalaxEye

Other States with Space Policies

• Karnataka:
  • Released Karnataka Space Technology Policy 2024–29
  • Goal: Capture 5% of global space technology market
    
• Gujarat:
  • Announced state-specific policy for investments in:
    • Satellite manufacturing
    • Launch services
    • Satellite-based applications

National Framework: Indian Space Policy 2023:

• Central government policy to provide structural support to India’s expanding space ecosystem.