India is strengthening its domestic space technology ecosystem with financial support for an indigenous propulsion system being developed by Manastu Space Technologies, a space technology company based in Navi Mumbai, Maharashtra.
On October 26, 2026, the Technology Development Board signed an agreement to provide ₹116 crore in financial support under the government’s Research Development and Innovation Fund. The project has a total estimated cost of ₹277.63 crore, and the support is structured as optionally convertible debt rather than a confirmed outright grant.
Editorial Insight
Key Highlights
Important points readers should notice.
Issue/Event: Government financial support for indigenous green propulsion technology for satellites and launch vehicles.
Location: Navi Mumbai, Maharashtra, India; a separate proposed demonstration partnership involves Japan’s Axelspace.
Authority/Organisation: Technology Development Board under the Department of Science and Technology, Manastu Space Technologies and Axelspace Corporation.
Action Taken: TDB signed a ₹116 crore financial support agreement; Manastu and Axelspace separately signed an MoU to explore a possible in-orbit demonstration.
Impact: The initiatives could strengthen domestic space propulsion capabilities, subject to further development, validation and any future demonstration.
The project focuses on developing a scalable propulsion system for satellites and launch vehicles. It is designed to cover thrust requirements ranging from 5 millinewtons to 300 newtons, potentially serving different classes of spacecraft.
Manastu’s system uses a hydrogen peroxide-based propellant with additives, alongside an integrated engine and catalyst system. The company is also working on propellant feed systems and an ultra-high-temperature ceramic catalyst intended to operate under demanding conditions.
The programme aims to advance the technology from Technology Readiness Level 6 to Level 9. This means further engineering, system integration, testing and validation are required before the planned system reaches the programme’s intended final readiness stage. The government announcement says the technology has already been demonstrated in space, but this does not mean every component or the complete planned propulsion system has reached TRL-9.
Editorial Analysis
Why This Matters
Propulsion is a critical component of satellite operations and space missions. Developing reliable domestic systems could help India expand its technical capabilities and reduce dependence on externally sourced solutions in parts of the space supply chain. The financial support could help Manastu Space undertake further engineering, integration and validation work. The separate Axelspace MoU offers a potential pathway to assess whether the technology could be integrated into a spacecraft for an orbital demonstration. However, these are intended outcomes, not completed results. The long-term impact will depend on technical performance, successful validation, commercial demand and whether the proposed demonstration proceeds.
A separate development could provide an additional opportunity for testing the technology. Japan’s Axelspace Corporation announced on October 26 that it had signed a memorandum of understanding with Manastu Space to explore an in-orbit demonstration using Axelspace’s AxelLiner Laboratory service.
The companies plan to assess the technical requirements for integrating Manastu’s propulsion system into an Axelspace spacecraft. The announcement describes an exploration and assessment process, not a confirmed launch booking or completed spacecraft integration.
Green propulsion technologies are being developed as alternatives to conventional spacecraft propellants that can involve demanding handling and operational requirements. Their practical value depends on performance, reliability, safety, compatibility with spacecraft and successful testing under real mission conditions.
For India, support for domestic propulsion development may help build capabilities in a technically demanding part of the space supply chain. The next important milestones will be engineering progress, validation results and any confirmed plans for an orbital demonstration.
