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The decision of the government comes soon after it successfully carried out an anti-satellite test.
As per the sources, the tri-services Space agency is likely to command all the space assets of the three services including the A-SAT capability, which can be used to destroy enemy space-based satellites and other assets. However, the final decision has not yet been taken on the capabilities and assets to be given to this agency.
Bengaluru seems to be an obvious choice as the location of the space agency as it is also the headquarters of ISRO, which manages all types of space programmes of the country, informed sources.