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Context:

Tamil Nadu became the third Indian state (after Karnataka and Gujarat) to adopt a comprehensive Space Industrial Policy.

Space Infrastructure in Tamil Nadu

ISRO Propulsion Complex (IRPC)

Location: Mahendragiri, Tirunelveli District

Functions:

• Testing earth storable propellant engines
• Cryogenic engines and stages development
• Research & Development programs
• Technology development initiatives

Second Spaceport (Under Development)

Location: Kulasekarapattinam, Thoothukudi

Significance:

• India's second spaceport facility
• Strategic location for satellite launches
• Enhanced space capabilities for India
• Coastal advantage for launch operations

Space Technology Incubation Centre

Location: National Institute of Technology (NIT) Tiruchi

Role:

• Southern region's primary STIC
• ISRO developmental projects
• Startup incubation and support
• Technology transfer programs

Emerging Space Startup Ecosystem in Tamil Nadu

Tamil Nadu is home to innovative space startups working across various specialized domains: Launch Vehicles, Reusable Launch Vehicles, In-Space Refuelling, In-Space Manufacturing, Multi-Payload Data Fusion, Satellite Services

The startup ecosystem represents modern technologies including advanced propulsion systems, space manufacturing capabilities, and sophisticated data analytics platforms for satellite-derived information.

What Triggered the Policy?

IN-SPACe Recommendation => The Indian National Space Promotion and Authorisation Centre suggested Tamil Nadu develop a state-specific space policy to leverage its existing infrastructure and capabilities.

Existing A&D Policy (2022) => Tamil Nadu's Aerospace and Defence Industrial Policy identified space as a priority sector, laying groundwork for focused development.

Strong Vendor Ecosystem => Over 250 vendors already serve ISRO requirements, creating a robust supply chain foundation for space industry growth.

Tamil Nadu Industrial Development Corporation (TIDCO)-IN-SPACe MoU => Strategic partnership to enable startups and companies in manufacturing, R&D, and space-grade component development.

Policy Objectives

The policy aims to capitalize on Tamil Nadu's existing advantages in electronics manufacturing, precision engineering, and related sectors while integrating space technologies into governance for improved citizen services.

Investment Incentives & Support Measures

Payroll Subsidies =>  Companies involved in R&D or establishing global capability centers in the space sector will receive government payroll subsidies to encourage high-skill employment.

Space Bays Designation => Select regions will be notified as "Space Bays" offering structured incentive packages for investments below ₹300 crore, creating focused industrial clusters.

Industrial Housing Incentive => 10% subsidy on residential facility development costs within industrial parks, capped at ₹10 crore over 10 years to support workforce housing.

Green Initiative Support => 25% subsidy on capital costs for green and sustainable initiatives, with a ceiling of ₹5 crore to promote environmentally responsible development.

Tamil Nadu's Strategic Advantages

Geographic Benefits

• Coastal location ideal for satellite launches
• Proximity to equator for orbital advantages
• Established port infrastructure
• Strategic location for international collaborations

Industrial Ecosystem

• Strong electronics manufacturing base
• Precision engineering capabilities
• Skilled technical workforce
• Established automotive and aerospace suppliers

Educational Infrastructure

• Premier technical institutions (IITs, NITs)
• Strong engineering education system
• Research and development capabilities
• Industry-academia collaboration programs

Expected Economic Impact

The ₹10,000 crore investment target is expected to create ripple effects across electronics, precision manufacturing, IT services, and advanced materials sectors, potentially generating additional economic activity worth 2-3 times the direct investment.

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Source: 

THE HINDU