A consortium involving India’s Bharti Global and the UK government was the highest bidder in an auction for the failed satellite company OneWeb.

The London firm went bankrupt in March while trying to build a spacecraft network to deliver broadband.

New investment from Bharti, British taxpayers and other commercial partners could now give OneWeb a second chance.

The government hopes the network could also work as a replacement for the loss of the EU’s Galileo sat-nav system.

Matters will be clarified on 10 July, when the US Bankruptcy Court for the Southern District of New York will rule on the sale.

If the Bharti-led option goes through, it will represent a bold intervention by the UK government, who are understood to be prepared to put $500m (£400m) into the purchase for an equity stake of 20% in the new operation.

Ministers’ interest is said to be driven by two factors. One is that they see satellites as a way to meet commitments on the roll-out of super-fast broadband; and the second is that OneWeb’s constellation could also deliver a precise Positioning, Navigation and Timing (PNT) service.

The latter has become a political imperative for No 10 since losing membership of Europe’s Galileo satellite-navigation system on departure from the EU in January.

In a statement, Business Secretary Alok Sharma said: “This deal underlines the scale of Britain’s ambitions on the global stage. Our access to a global fleet of satellites has the potential to connect millions of people worldwide to broadband, many for the first time, and the deal presents the opportunity to further develop our strong advanced manufacturing base right here in the UK.”

OneWeb, which has its HQ in west London and parallel operations in Virginia, US, had initially raised $3bn of investment to build its mega-constellation.

Seventy-four satellites in an initial network of 648 had been launched when the company announced recourse to bankruptcy protection, blaming the Covid crisis for the inability to raise additional financial support. Most experts believe a further $3bn at least is needed to bring the full constellation into use.

Assuming there are no regulatory blockages put in the path of the consortium plan, OneWeb should soon be able to start pulling back staff that were laid off, and to resume the manufacture and launch of its satellites. The spacecraft are currently made in Florida in a partnership with European aerospace giant Airbus.

There has been talk of this production, or at least some of it, being moved to Britain in future as part of the new arrangements.

Jonathan.Amos-INTERNET@bbc.co.uk and follow me on Twitter: @BBCAmos