Centre puts Starlink’s state-level deals on hold over licensing concerns

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Centre puts Starlink’s state-level deals on hold over licensing concerns Credit: Businessline
Centre puts Starlink’s state-level deals on hold over licensing concerns Credit: Businessline

Starlink’s plans to expand satellite internet access across Indian states have hit a regulatory hurdle, with the Centre warning the company and state governments against moving ahead without the required licence.

The government has questioned Starlink India over its decision to sign memorandums of understanding (MoUs) and letters of intent (LoIs) with states before receiving approval to operate in the country.

Over the past year, Goa, Gujarat, Maharashtra and Meghalaya have entered into agreements with Starlink for satellite-based internet connectivity. Maharashtra became the first state to sign an LoI with the company in November 2025, with plans to connect government institutions, rural communities and critical infrastructure in remote areas.

Gujarat exchanged an LoI with Starlink in February 2026 to explore high-speed satellite connectivity across remote, border and underserved areas. Meghalaya signed an MoU with Starlink India in April, with plans to improve connectivity for schools, health centres and rural communities beyond the reach of ground-based telecom networks.

The Centre has now asked these states to halt further discussions and warned other states against proceeding with Starlink until the company receives the necessary clearances.

“The Centre has questioned the company on how it could sign agreements with State governments without a licence. It has also told States that have signed LoIs/MoUs with Starlink, and warned others, not to proceed without a go-ahead from the Centre,” an official said.

The government is also reviewing security concerns around satellite communications, particularly in border states and parts of the North East, where officials fear the technology could be misused by insurgent groups.

“The government wants the technology to be fool proof and some related commitments from Starlink before it issues a license,” sources said.

Starlink India had not responded to queries at the time of publication.

The company has reportedly reapplied to the Indian National Space Promotion and Authorisation Centre (IN-SPACe) for authorisation of its Gen 2 constellation, which would operate at an altitude of 340-615 km in Low Earth Orbit.

Meanwhile, Elon Musk said on X that “Starlink would help the least served in India, especially in rural areas,” as the company continues to await the approvals required to begin operations.

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