Centre Admonishes Starlink Over MoUs With States Without Operating Licence

The Central government has admonished senior officials of Elon Musk-owned Starlink in India, making it clear that the company cannot sign memorandums of understanding (MoUs) or letters of intent (LoIs) with State governments without first obtaining the required licence to operate in the country.

Sources in the know revealed that the Centre has also warned States that have already signed agreements with Starlink not to initiate or proceed with any projects until the satellite company receives a green signal and the necessary clearances from the government.

Over the past year, several States including Goa, Gujarat, Maharashtra, and Meghalaya have signed agreements with Starlink to explore satellite-based internet connectivity in their regions. Maharashtra was the first State to sign a letter of intent with the company in November 2025, with then-Chief Minister Devendra Fadnavis noting that the agreement aimed to connect government institutions, rural communities, and critical public infrastructure in remote areas.

Subsequently, the Gujarat government exchanged an LoI with Starlink in February for mutual cooperation in high-speed satellite internet for remote, border, and underserved areas. In April, Meghalaya also signed an MoU with Starlink India, with Chief Minister Conrad Sangma stating it would extend connectivity to schools, health centres, and rural communities not reached by ground-based telecom infrastructure.

Following these developments, the government has directed these States to halt all related talks. An official privy to the matter stated that the Centre questioned how the company could sign agreements without a licence and warned other States against proceeding without official authorization.

Government sources indicated that security aspects of satellite-based communications are still under examination, particularly concerning bordering regions and the North East, where authorities want to ensure the technology cannot be misused by insurgent groups. The administration wants the technology to be foolproof and expects specific commitments from Starlink prior to issuing a licence.

Meanwhile, Starlink has reportedly re-applied to the Indian National Space Promotion and Authorisation Centre (IN-SPACe), the national space regulator, seeking authorisation for its Gen 2 constellation to operate in Low Earth Orbit at an altitude of 340-615 km. Elon Musk recently posted on social media suggesting that Starlink could help provide connectivity in the least-served and rural areas of the Indian hinterlands, even as the company continues to navigate regulatory hurdles to launch operations.

"Regulatory compliance remains the absolute foundation for operating in the Indian market, particularly in critical sectors like telecommunications and satellite communications involving national security. For startups and global enterprises alike, engaging with state-level entities or signing preliminary agreements before securing mandatory central licenses and security clearances creates avoidable compliance risks. Businesses must navigate India's regulatory frameworks sequentially, ensuring all approvals from bodies like IN-SPACe and central ministries are fully in place before initiating operational partnerships." — Dr. Shishir Gupta, Founder & CEO, StartupLanes