Manastu Space Secures ₹116 Crore Government Support to Develop Indigenous Green Propulsion Systems

India is strengthening its indigenous space propulsion capabilities through a major government-backed technology development programme. The Technology Development Board (TDB), under the Department of Science and Technology (DST), has signed an agreement with Navi Mumbai-based Manastu Space Technologies Private Limited to provide ₹116 crore in financial assistance for developing advanced green propulsion systems for satellites and launch vehicles.

Announced on 26 October 2026, the agreement forms part of the government’s Research Development and Innovation (RDI) Fund. The project involves a total investment of ₹277.63 crore and aims to develop scalable propulsion systems covering thrust requirements from 5 millinewtons (mN) to 300 newtons (N). The programme will advance the technology from Technology Readiness Level 6 (TRL-6) to TRL-9, moving it towards full operational maturity and wider commercial deployment.

The development represents an important step in India’s efforts to build domestic capabilities in critical space technologies while encouraging propulsion systems that offer improved operational safety, cost efficiency and environmental performance.

₹116 Crore RDI Support for Indigenous Space Propulsion

The Technology Development Board will provide ₹116 crore in financial assistance to Manastu Space through Optionally Convertible Debt (OCD). This financing instrument allows debt to be converted into equity under specified contractual conditions, providing a mechanism for supporting capital-intensive technology development.

The financial support forms part of the larger ₹277.63 crore project, which focuses on developing and validating an integrated green propulsion platform. The programme encompasses propulsion engines, propellant-feed systems, catalysts, system integration and extensive testing required to prepare the technology for wider deployment.

Developing space propulsion technologies requires sustained investment because individual components must perform reliably under demanding thermal, mechanical and operational conditions. Engineering validation, endurance testing and qualification can be particularly resource-intensive as systems progress from advanced prototypes towards operational products.

Through the RDI Fund, the government is supporting the next phase of Manastu Space’s development programme, with the objective of strengthening indigenous propulsion technologies and reducing dependence on externally sourced systems.

Hydrogen Peroxide-Based Green Propulsion Technology

Manastu Space is developing a propulsion system based on hydrogen peroxide combined with additives, supported by an integrated engine and catalyst architecture. The technology is intended to provide a safer and more sustainable alternative to certain conventional chemical propulsion systems used in space applications.

Hydrogen peroxide can function as a propulsion-system oxidiser and, in suitable concentrations and configurations, as a monopropellant. When passed through an appropriate catalyst, it decomposes into water vapour and oxygen while releasing heat. The resulting high-temperature gases can be expanded through a nozzle to generate thrust.

The company’s propulsion approach incorporates a specially developed catalyst system and associated engineering components intended to improve reliability and performance. According to the government announcement, the proposed architecture aims to address operational difficulties associated with conventional propellants while improving overall mission economics.

The environmental advantages of such systems depend on the complete propellant formulation, handling requirements and operational conditions. Nevertheless, hydrogen peroxide-based propulsion offers an alternative development pathway to traditional propulsion technologies that rely on more hazardous chemicals.

Propulsion Systems Covering 5 mN to 300 N Thrust

A major feature of the project is its scalable design, which aims to accommodate propulsion requirements across a wide range of spacecraft applications.

At the lower end, the proposed systems will provide thrust beginning at 5 millinewtons. Such low-thrust propulsion systems are relevant to satellite manoeuvring, precise attitude adjustments and other applications that require controlled changes in spacecraft motion.

At the higher end, the programme targets propulsion systems capable of producing up to 300 newtons of thrust. This expanded capability is intended to support more demanding propulsion requirements associated with larger spacecraft and selected launch vehicle applications.

Developing a common propulsion technology platform across different thrust classes could allow Manastu Space to adapt its engineering architecture for multiple products. This approach may also support manufacturing standardisation, component commonality and more efficient development of new propulsion configurations.

The government has identified scalability as a central objective of the programme. However, the complete 5 mN to 300 N product range remains a development target rather than a confirmed portfolio of fully qualified operational systems.

Ultra-High-Temperature Ceramic Catalyst and Integrated Engine Development

The project includes the development of propulsion engines, propellant-feed systems and an ultra-high-temperature ceramic catalyst. These components will play important roles in achieving the required performance and reliability across different thrust classes.

Catalysts are particularly important in hydrogen peroxide-based propulsion systems because they initiate and sustain the decomposition process that releases energy from the propellant. Their effectiveness, durability and thermal stability influence the performance of the propulsion system.

High-temperature operating conditions place substantial demands on catalyst materials. Repeated thermal cycling, exposure to reactive substances and prolonged operation can affect the reliability of conventional materials.

The proposed ceramic catalyst is intended to support dependable operation under demanding conditions. Its development forms part of Manastu Space’s broader effort to establish an integrated propulsion architecture in which the engine, catalyst and propellant-feed system operate together.

The programme will also involve engineering integration and validation of these components, helping establish their suitability for eventual operational deployment.

From Space Demonstration to TRL-9 Readiness

Manastu Space’s propulsion technology has already undergone an in-space demonstration, according to the Department of Science and Technology.

This provides an important foundation for the new programme, as it indicates that elements of the technology have progressed beyond laboratory development and terrestrial testing.

The current project is classified at Technology Readiness Level 6, which generally corresponds to the demonstration of a system or subsystem prototype in a relevant environment. The objective is to advance the propulsion technology to TRL-9, representing a system that has demonstrated its operational capability under actual mission conditions.

Moving between these stages requires further engineering, comprehensive testing, integration with spacecraft systems and verification of performance under conditions representative of intended missions.

The agreement is intended to support that progression through additional development, system validation and operational qualification activities.

Although the technology has demonstrated capability in space, the announcement does not state that the entire proposed propulsion range has already achieved TRL-9. The distinction is important because the present funding specifically supports advancement towards that level of maturity.

Strengthening India’s Satellite and Launch Vehicle Ecosystem

Propulsion systems are essential components of modern satellites and launch vehicles. Satellites use propulsion for orbit adjustments, station-keeping, collision-avoidance manoeuvres, attitude control in some architectures and end-of-life disposal operations.

As spacecraft operations become more complex, manufacturers and satellite operators increasingly require propulsion systems that combine reliability, precision, compact design and efficient propellant utilisation.

For smaller satellites, propulsion technology can expand mission capabilities by allowing spacecraft to adjust their orbits rather than relying entirely on their initial deployment conditions. Larger spacecraft and specialised missions may require higher thrust levels and more demanding operational performance.

Manastu Space’s programme aims to address these requirements through a scalable indigenous propulsion platform.

The inclusion of launch vehicle applications also expands the project’s intended technological scope, although the specific vehicle configurations and mission integrations have not been detailed in the government announcement.

By developing critical propulsion components domestically, the initiative seeks to strengthen India’s space manufacturing supply chain and provide additional options for future satellite and launch vehicle developers.

TDB Highlights the Importance of Indigenous Propulsion

Technology Development Board Secretary Rajesh Kumar Pathak emphasised that indigenous propulsion systems are important for strengthening India’s capabilities throughout the space technology value chain.

He noted that India’s expanding space ecosystem requires propulsion systems capable of delivering reliable performance while meeting increasingly demanding standards of safety and cost efficiency.

Pathak explained that the RDI Fund supports technology-intensive programmes requiring sustained investment to progress from advanced development towards deployment. He identified the partnership with Manastu Space as part of the government’s effort to develop indigenous space technologies and encourage more sustainable approaches to space operations.

Manastu Space’s Co-Founder and Chief Technology Officer also welcomed the agreement, stating that the financial support would help the company advance its propulsion technology through additional engineering, integration and validation.

The company intends to use the programme to improve scalability, reliability and operational performance while preparing its green propulsion platform for greater technological maturity.

RDI Fund Supports Commercialisation of Deep Technologies

The agreement places Manastu Space’s propulsion programme within the Deep Technology sector, with Space Technology identified as its sub-sector.

Deep-technology development frequently involves lengthy research cycles, specialised materials, complex engineering requirements and substantial qualification costs. These characteristics can make the transition from laboratory research to commercially deployable technology particularly challenging.

The RDI Fund is intended to support innovation-intensive programmes that require financing beyond their early research stages. In this case, TDB’s assistance will support a propulsion technology platform that has already demonstrated elements of its capabilities but requires further development to reach full operational readiness.

The use of Optionally Convertible Debt provides a financing structure for the project while allowing the government-supported programme to participate in the development of a commercially relevant technology.

The initiative also reflects a broader effort to strengthen domestic technology enterprises working in strategically important sectors.

Building India’s Next Generation of Space Propulsion Technologies

The agreement between TDB and Manastu Space represents a significant commitment to advancing India’s domestic space propulsion capabilities. With ₹116 crore in RDI Fund assistance supporting a ₹277.63 crore project, the programme provides financial backing for the development of a scalable propulsion platform designed to serve multiple spacecraft applications.

Its technical scope encompasses hydrogen peroxide-based propellants, high-temperature ceramic catalysts, propulsion engines and integrated feed systems. The planned progression from TRL-6 to TRL-9 will focus on transforming demonstrated technology into systems capable of meeting operational requirements.

As India’s commercial space ecosystem expands, access to reliable domestically developed propulsion technologies will become increasingly important for spacecraft manufacturers, satellite operators and launch vehicle developers.

The Manastu Space programme strengthens this direction by supporting indigenous engineering, advanced materials development and propulsion-system qualification. Its successful progression through the planned development stages would establish a stronger foundation for India’s future satellite and launch vehicle technologies.

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References

1. Press Information Bureau, Ministry of Science and Technology, 26 October 2026. TDB-DST signs agreement with Manastu Space for ₹116 crore RDI support to advance indigenous green propulsion technology. Release ID: 2328399.
   https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2328399
2. Department of Science and Technology, Government of India — Technology Development Board and indigenous technology development initiatives.
   https://dst.gov.in/

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