Government on Friday gave its nod for carrying out design, development and launch of GSAT-8/INSAT-4G spacecraft at a total cost of Rs 610 crore with a foreign exchange component of Rs 380 crore.
Of this amount, Rs 300 crore will be for the satellite, Rs 250 crore for the launch and Rs 60 crore for insurance, Finance Minister P Chidambaram told reporters while briefing them on the outcome of the Cabinet meeting.
The decision for launching the state-of-the-art satellite is aimed at augmenting the INSAT system capacity with Ku-band high power transponders and a navigation payload, he said.
This will considerably improve the much needed high power Ku-band capacity to meet the requirements of domestic direct-to-home transmissions, VSAT and computer to computer connectivity and redundancy to the navigation payload.
The project schedule is estimated to be 24 months from the project start date, the minister said.
The Cabinet also gave its approval for setting up of Overseas Indians' Centre in Dubai.