Centre Tells States to Put Starlink Deals on Hold Until Company Gets Licence

The Centre has asked states to pause Starlink deals until the satellite internet company secures required licences and regulatory approvals in India.

By Indrani Priyadarshini

on August 24, 2026

The Centre has asked states that have signed agreements with Elon Musk-owned Starlink to put further discussions and projects on hold until the satellite internet company receives the necessary licence to operate in India.

The move comes after the government questioned Starlink India over its decision to sign memorandums of understanding (MoUs) and letters of intent (LoIs) with state governments while some regulatory approvals are still pending, according to a report by Businessline cited by The Wire.

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Maharashtra, Gujarat, Meghalaya and Goa are among the states that have entered into agreements with Starlink over the past year. The proposed partnerships have largely focused on bringing high-speed satellite connectivity to rural, remote and underserved areas.

Why has the Centre asked states to pause Starlink projects?

The Union government has made it clear that state-level agreements cannot translate into actual projects or deployments until Starlink completes the required regulatory process. According to government sources cited in the report, states that have already signed MoUs or LoIs with Starlink have been asked to hold off on further discussions. Other states have also been cautioned against moving ahead with similar arrangements without approval from the Centre.

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The government has also questioned Starlink over how it entered into agreements with states before securing the licence needed to provide satellite internet services commercially in India. The issue is particularly sensitive because satellite communication networks can have implications beyond ordinary telecom services, including national security and communications monitoring.

Which states have signed agreements with Starlink?

Several states have shown interest in using Starlink to address connectivity gaps.

Maharashtra: The state signed a letter of intent with Starlink in November 2025. The proposed partnership was aimed at improving connectivity for government institutions, rural communities and critical infrastructure in remote parts of the state.

Gujarat: Gujarat exchanged an LoI with Starlink in February 2026. The agreement focused on satellite-based internet connectivity in remote, border and underserved areas.

Meghalaya: The state signed an MoU with Starlink India in April 2026. The proposed service was intended to reach schools, healthcare facilities and rural communities where traditional telecom infrastructure has limited reach.

Goa: Goa has also entered into an agreement with Starlink for satellite connectivity, adding to the growing list of state-level partnerships involving the company.

For states with difficult terrain or areas where laying fibre and building telecom infrastructure is expensive, satellite broadband could offer a faster way to improve connectivity.

Security concerns remain a key hurdle

The licensing issue is not only about commercial approval. Government officials are also examining the security implications of satellite communications. According to the report, particular attention is being given to border areas and parts of the Northeast, where officials are concerned about the possible misuse of satellite connectivity by insurgent groups.

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Starlink is expected to provide certain security-related assurances before the government grants the necessary approvals. This is an important part of India’s satellite communications framework. Unlike a state-level connectivity project, satellite services operate across large geographical areas and require coordination on issues such as spectrum, security and regulatory oversight.

Starlink is still waiting for key approvals

Starlink’s India plans have been moving through the regulatory system for some time. The company has reportedly submitted a fresh application to the Indian National Space Promotion and Authorisation Centre (IN-SPACe) for its Gen 2 satellite constellation.

The proposed constellation would operate in low Earth orbit at altitudes between 340 km and 615 km. Starlink’s regulatory journey has therefore continued even as the company has started building relationships with potential partners and state governments. The latest intervention from the Centre makes the position clear: state-level interest does not replace central regulatory approval.

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