Technology Development Board commits ₹116 crore to Manastu green propulsion

Navi Mumbai-based Manastu Space Technologies Private Limited will receive ₹116 crore under an agreement signed by the Technology Development Board on Oct. 26, 2026 for green propulsion systems aimed at satellites and launch vehicles. The board operates under the Department of Science and Technology. The signing took place on Monday. The Technology Development Board is a body under the DST that funds technology development programmes.

The total estimated project cost is ₹277.63 crore, of which the board supplies ₹116 crore. The programme aims to raise the technology from Technology Readiness Level 6 to Technology Readiness Level 9 through further engineering, system integration, testing and validation. Reaching TRL 9 means preparing the propulsion system for wider deployment after in-space demonstration. The government funding is part of a larger project budget that the company and the fund together support for developing the propulsion system.

The Research Development and Innovation Fund supports technology-intensive programmes needing sustained investment to move from advanced development toward deployment. Rajesh Kumar Pathak, the TDB secretary, said the Manastu project reflects this commitment. He framed the financing as part of a sustained effort to enable more sustainable approaches to accessing space. The RDI Fund is designed to support technology-intensive programmes that need sustained investment.

Manastu Space is building an integrated propulsion system around a green propellant made from hydrogen peroxide with additives, plus an engine and catalyst system. UANWORLD says the “green” label chiefly means safer handling and reduced toxicity compared with conventional propellants, rather than zero environmental impact. Its scalable architecture covers thrust from 5 millinewtons to 300 newtons, serving small satellites and higher-thrust launch vehicle applications.

The project will develop propulsion engines, propellant feed systems and an ultra-high-temperature ceramic catalyst for reliable operation under demanding conditions. These components form the core hardware that must work reliably in the harsh environment of space propulsion. The broad thrust range is the reason the same platform is intended to serve both small satellite needs and larger launch vehicle requirements. The ultra-high-temperature ceramic catalyst is a key component for reliable operation.

The propulsion technology has already demonstrated in space, and the next phase focuses on engineering, integration, testing and validation to improve reliability and prepare wider deployment. The earlier in-space demonstration established a baseline, while the funded work moves the system toward operational readiness. UANWORLD cautions that the earlier in-space demonstration is not routine commercial operation. The next stage adds engineering, integration, testing and validation to boost reliability and support wider use.

The project falls under the Deep Technology sector with Space Technology as its sub-sector, and aims to strengthen domestic manufacturing while reducing dependence on imported propulsion technologies. Lokmat Times, citing IANS, states the initiative marks a key step towards India’s self-reliance in space technology. The classification and import-reduction goal are part of India’s broader push to build indigenous capability in a critical segment of the space industry.

Rajesh Kumar Pathak, the TDB secretary, said indigenous propulsion technologies are important for strengthening India’s capabilities across the space value chain as the space ecosystem expands. He connected the need for propulsion systems to performance, reliability, operational safety and cost efficiency while India’s space sector grows. Pathak’s comments highlight the importance of indigenous propulsion technologies for India’s space value chain.

In a statement cited by Lokmat Times, Pathak said, “These technologies are crucial for strengthening India’s capabilities across the space value chain,” The company’s co-founder and chief technology officer said the funding will help advance the green propulsion platform through development, integration and validation toward TRL-9 and commercial readiness. He described the goal as a scalable propulsion platform combining performance, reliability and cost efficiency with safer, more sustainable propellant systems. The co-founder’s statement emphasizes the goal of a scalable propulsion platform.

UANWORLD reports that the ₹116 crore takes the form of optionally convertible debt that may convert under agreed terms, not a grant. The outlet says the “green” label chiefly means safer handling and reduced toxicity compared with conventional propellants, rather than zero environmental impact. The optionally convertible debt structure means the investment could convert under agreed terms, not a direct grant.

The company signed a memorandum with Japan’s Axelspace to explore an in-orbit demonstration through the AxelLiner Laboratory service, though no launch date, completed integration or firm flight contract exists. UANWORLD says the public investment strengthens India’s effort to keep more value in its domestic space supply chain, and that the real test will be independently verifiable performance, costs, safety and delivery. Investmentguruindia.com says Manastu Space is building an indigenous green propulsion system meant to offer a full propulsion solution for satellites and launch vehicles. The memorandum with Axelspace is a separate exploratory arrangement, distinct from the TDB-funded ground development work.