Aug 12 (Reuters) - India's space regulator has picked a

consortium led by Google-backed startup PixxelSpace to build a

commercial home-grown constellation of earth observation

satellites, with an investment of more than 12 billion rupees

(nearly $137 million) over the next five years, it said on

Tuesday.

The consortium, comprising local space tech firms Piersight

Space, Satsure Analytics India and Dhruva Space, will design,

build, and operate the satellites, the Indian National Space

Promotion and Authorisation Centre (IN-SPACe) said.

The PixxelSpace-led consortium won the project, outbidding

Indian defence equipment makers Astra Microwave and

Bharat Electronics.

The Indian government wants to reduce its dependence on

foreign systems, including the widely used U.S. Global

Positioning System (GPS), and says its regional navigation

satellite system, called NavIC (Navigation with Indian

Constellation), provides more accurate domestic navigation and

that its use would benefit the economy.

This is in line with Prime Minister Narendra Modi's drive

for self-reliance, which has also expanded the use of NavIC.

India has also been pushing tech giants to make smartphones

compatible with its home-grown navigation system within months,

worrying the likes of Samsung, Xiaomi and Apple.

($1 = 87.6790 Indian rupees)