How will Privatization of Indian Space Sector change the scenario?

By: Harshik

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Indian Space Research Organisation (ISRO), a proud organisation had started its journey in the year 1962, the same year when America put a man on the moon. We must take pride in the fact that we have come this far. Here are some quality achievements of ISRO-

•        ISRO has a world record of launching 104 satellites in one go.

•        India can launch satellite at a very cheap rate.

•        ISRO has its own space observatory (Astrosat).

•        ISRO has its own navigational system (NaViC).

•        ISRO discovered three species of rare bacteria highly resistant to ultra-violet radiation in the upper stratosphere.

Why private participation in the space sector?

Indian space has had the participation of private sectors on small scale for a long time. A large part of the manufacturing and fabrication of rockets and satellites happens in the private sector. There is increasing participation of research institutions as well.

But the Indian industry had a bare 3% share in a rapidly growing global space economy which is already worth at least $360 billion. Only 2% of this market is for rocket and satellite launch services. The remaining 95% related to satellite-based services, and ground-based systems.

•        Limited role- Indian industry is unable to compete because till now its role has been mainly that of suppliers of components and sub-systems.

•        Lack of resources and technologies- Indian industries do not have the resources or the technology to undertake independent space projects of the kind that US companies such as SpaceX have been doing or provide space-based services.

•        Growing demand- The demand for space-based applications and services is growing even within India, and ISRO is unable to cater to this.

•        Cross sector application- The need for satellite data, imageries, and space technology now cut across sectors, from weather to agriculture to transport to urban development and more.

•        Dispersal of space technologies- There is a need for greater dispersion of space technologies, better utilization of space resources, and increased requirement of space-based services.

Advantages of privatisation of Indian space sector

The private participation will help give the Indian space sector the boost and pace it needs to match up to other mature space agencies like NASA.

•        Commercial and strategic advantages are two of the major reasons.

•        The private industry will spare time for ISRO to concentrate on science, research and development, interplanetary exploration, and strategic launches.

With the hope of the Indian Space Policy 2023- S. Somanath assured that ISRO will not do any operational and production work for the space sector and focus its energies on developing new technologies, new systems and research and development. The operational part of ISRO’s missions will be moved to the NewSpace India Limited, a public sector undertaking under the Department of Space. Thus, private players can take up routine and commercial activities, launching weather and communication satellites, etc, hence helping ISRO give more time to space research.

•        The economic benefits are immense in the future which can be shared by the private sector and ISRO, and ISRO can only gain by making its facilities and data available to private players.

Several Indian companies are waiting to make use of these opportunities and a few companies are in the process of developing their launch vehicles and the rockets into space. Hence, the need for the expanding space sector and readiness of private sector players have given the ideal encouragement. ISRO is also ready to provide all its facilities to private players whose projects had been approved by IN-SPACe (Indian National Space Promotion and Authorisation Centre), which was launched by the government in 2020 as a part of reforms to increase private participation in space sector. Thus, private companies could even build their launchpad within the Sriharikota launch station, and ISRO would provide the necessary land for that.

IN-SPACe: Interface between ISRO and Private Parties

IN-SPACe is supposed to be a facilitator, and also a regulator. It will act as an interface between ISRO and private parties and assess how best to utilize India’s space resources and increase space-based activities.

•        IN-SPACe – is the second space organization created by the government in the last years.

•        New Space India Limited (NSIL)- In the 2019 Budget, the government had announced the setting up of a New Space India Limited (NSIL), a public sector company that would serve as a marketing arm of ISRO.

•        NSIL’s purpose- Its main purpose is to market the technologies developed by ISRO and bring more clients that need space-based services.

•        Antrix Corporation- another PSU working under the Department of Space, will be handling ISRO’s commercial deals for satellites and launch vehicles with foreign customers.

IN-SPACE is a significant step in the space sector development in India-

•        IN-SPACe will provide a level playing field for private companies to use Indian space infrastructure.

•        These reforms will allow ISRO to focus more on new technologies, exploration missions, and human spaceflight programs.

•        Allowing industries and others like students, researchers, or academic bodies greater access to space assets would lead to much better utilization of Indian space resources.

•        IN-SPACe will attempt to enhance the activities, including access to space assets data and activities

•        It will propel the Indian Industry as an important player in the global space economy.

•        There is also an opportunity for large-scale employment in the technology sector and India becoming a powerhouse.

Digantara- Initial steps of private companies: India’s first in-orbit space debris monitoring

According to the Economic Survey of India, there have been over 100 active space companies since 2012. Many of them are currently vying for approval from the newly formed InSpace, or the Indian National Space Promotion and Authorisation Centre.

The foundation for private interference has been kept in the Indian space sector. One such company is Digantara-

•        Digantara Research and Technology, a space tech startup was selected for the SID (Society for Innovation and Development) program at IISc, Bengaluru.

•        Digantara is India’s first air and space surveillance company.

•        It developed India’s first in-orbit space debris monitoring and tracking system based on LIDAR (light detection and ranging) technology.

•        It will provide global real-time earth coverage by deploying cost-efficient nanosatellites in LEO (Low Earth orbit) and a space-based air surveillance payload for accurate tracking of both aircraft and space objects.

•        Digantara will help international space agencies track and map space debris and minimize the threat to future space exploration.

Challenges for privatisation of  Indian space sector

1. Brain Drain: Many talented individuals are leaving India’s space and aerospace sector due to India’s limited influence on the global space platform.

2. Policy Bottlenecks: Private space companies and entrepreneurs face challenges in attracting investors and operating in India due to policy-related obstacles.

3. Lack of Framework: The absence of a clear framework hampers independent private participation in the space sector.

4. Absence of Space Law: The lack of space laws, insurance clarity, and indemnity provisions create uncertainty regarding liability in case of mistakes or accidents.

5. Private Business Activity: Private businesses are involved in equipment and frame fabrication, either by outsourcing specifications or obtaining leased licenses.

A new start

Throughout the globe, space sector is no longer the reserve of the government, as the entry barriers to private players are being lifted and entrepreneurs are exhibiting a keen interest to foray in this niche sector.

In the past two decades, through a combination of technology, policy, and will, governments of more than a dozen countries have successfully transferred many space operations to the private sector and it has yielded good results. The United States, Europe, Russia — all have space industries with big players like Boeing, SpaceX, Air Bus, Virgin Galactic, etc.

The space sector can play a catalytic role in the technological advancement and expansion of the Indian industrial base. India is among a few countries with advanced capabilities in the space sector hence with the reforms, the sector will receive new energy and dynamism, to help the country leapfrog to the next stages of space activities. The space sector needs more participation to boost the country’s space programs to newer heights at a faster pace.

By: Harshik

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