Manastu Space Gets ₹116 Crore From the RDI Fund to Take Its Hydrazine-Free Thrusters to Flight Readiness

Navi Mumbai-based Manastu Space Technologies has become the latest deep-tech company to draw on the government's Research, Development and Innovation (RDI) Fund. On Monday, 26 October 2026, the Technology Development Board (TDB) of the Department of Science and Technology signed an agreement to provide the start-up with ₹116 crore to develop a scalable green propulsion system for satellites and launch vehicles. On the same day, Manastu signed a memorandum of understanding with Japanese satellite maker Axelspace.

The deal

The TDB support comes as Optionally Convertible Debt (OCD), the instrument the RDI Fund has used for its recent deals. The total project cost is ₹277.63 crore, so the government is funding a little over 40% of it.

The project covers an integrated green propulsion system across a thrust range of 5 millinewtons to 300 newtons. That span runs from the tiny thrusters used for fine attitude control and station-keeping on small satellites to engines large enough for orbit raising and for upper stages or attitude control on launch vehicles. The stated goal is to take the technology from Technology Readiness Level (TRL) 6, a prototype demonstrated in a relevant environment, to TRL 9, flight-proven in operational missions.

Why "green" propulsion matters

Most satellites today rely on hydrazine, a propellant that is highly toxic and carcinogenic. Fuelling a hydrazine-powered satellite requires protective suits, special facilities and strict handling procedures, which add cost and time to every mission.

Manastu's system uses a hydrogen peroxide-based propellant blended with additives, decomposed by an integrated engine and catalyst system. The company's proprietary MS-289 propellant is described as a hydrogen peroxide–alcohol blend. Hydrogen peroxide-based propellants are far easier and safer to handle than hydrazine, which can make fuelling simpler and cheaper, and the company has said its blend offers better fuel efficiency than conventional alternatives.

From PSLV test to RDI support

Manastu was founded by IIT Bombay alumni Tushar Jadhav and Ashtesh Kumar. In what the IIT Bombay alumni association described as a space milestone, the company fired its green propulsion system in orbit on the PSLV-C60 mission, launched at the end of December 2024. The start-up has since raised a $3 million pre-Series A round and has outlined ambitions in in-space refuelling and debris-avoidance services.

The RDI support is meant to bridge the gap between a single successful in-space test and a family of flight-qualified products that satellite makers can buy off the shelf.

The Axelspace link

The MoU with Tokyo-based Axelspace is aimed at integrating Manastu's green propulsion system into Axelspace's spacecraft, while exploring the possibility of an in-orbit demonstration. ThePrint noted that the agreement is not a confirmed launch, flight contract or completed integration. Even so, interest from an established Japanese small-satellite builder is a useful signal for an Indian propulsion supplier hoping to sell abroad.

The RDI Fund's growing space and deep-tech portfolio

The ₹1 lakh crore RDI scheme provides long-term, low-cost capital to private companies working in advanced research areas such as AI, quantum technology and space. Manastu's agreement follows ₹200 crore for Agnikul Cosmos's reusable Agnibaan launch vehicle in September and ₹150 crore for QNu Labs' quantum-secure networks earlier this month, along with ₹86 crore for AI drug-discovery firm Peptris Technologies.

Together, these deals show the fund concentrating on technologies where India has strong start-ups but where the path from prototype to product is long and capital-intensive.

Why it matters

India's private space sector is moving from one-off demonstrations to commercial production of satellites and launch vehicles. Propulsion is one of the subsystems that Indian satellite builders still often import. A domestic, non-toxic, flight-qualified propulsion line could reduce that dependence, lower integration costs for Indian constellations and give Manastu a product to export into a global small-satellite market that is moving away from hydrazine.

Sources

• https://www.thehawk.in/news/science/govt-signs-mou-with-manastu-space-for-rs-116-crore-rdi-support-to-advance-indigenous-green-propulsion-technology
• https://mumbaitribune.in/2026/10/26/tdb-dst-signs-rs-116-crore-rdi-agreement-with-manastu-space-to-boost-indigenous-green-propulsion-technology/
• https://english.revoi.in/govt-provides-%E2%82%B9116-crore-to-manastu-space-for-indigenous-green-propulsion-technology/
• https://www.socialnews.xyz/2026/10/26/govt-signs-mou-with-manastu-space-for-rs-116-crore-rdi-support-to-advance-indigenous-green-propulsion-technology/
• https://theprint.in/india/manastu-space-inks-pact-with-japans-axelspace-to-explore-green-propulsion-integration/3081949/
• https://acr.iitbombay.org/news/iit-bombay-alumni-and-faculty-achieve-space-milestone-with-first-green-propulsion-system/
• https://payloadspace.com/manastu-space-closes-3m-pre-series-a/
• https://www.gktoday.in/tdb-provides-%E2%82%B9200-crore-rdi-support-to-agnikul-cosmos/
• https://www.electronicsforyou.biz/industry-buzz/qnu-labs-gets-%E2%82%B9150-crore-for-indigenous-quantum-security-technologies/