India’s space industry: Privatisation.

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India’s space industry

News Highlight:

The Principal Scientific Advisor stated that the government would soon develop a new space policy to increase private sector participation in the India’s space industry.  

India’s space industry

India’s stand in the global space market

  • As per Space Tech Analytics, India is the sixth ­largest player in the industry internationally, having 3.6% of the world’s space ­tech companies (as of 2021).
  • The Indian Space Industry was valued at $7 billion in 2019 and aspires to grow to $50 billion by 2024.
  • India’s total budgetary allocation for FY 2022-23 towards the Department of Space was ₹13,700 crore.

Current status of privatisation of the space sector in India.

  • Indian National Space Promotion and Authorisation Centre (IN­SPACe)
    • IN-SPACe was formed to assess the need and demands of private players
  • New Space India Ltd (NSIL)
    • NSIL was formed to act as an interface between ISRO and private parties and assess how best to utilise India’s space resources and increase space-based activities.
  • SpaceCom and SpaceRS policies
    • Aims at regulating the commercial use of satellites, orbital slots, and ground stations for communication needs. 
  • More than 100 start-ups worked in the space sector, with 47 start-ups registering with the government in 2021.
  • Five private satellites have been tested at ISRO facilities, and four student satellites were launched aboard the PSLV C-51

Importance of developing the space sector

  • Space technology for governance and development.
    • It is working with various ministries and government departments to extend the use of space technology in such areas as education and health, connectivity, and e-governance.
  • For connectivity
    • Satellite communication can reach more remote areas where conventional networks would require heavy complementing infrastructure.
  • Country’s security
    • The most basic way to secure our space capabilities is to distribute them across many different satellites and spacecraft 
    • So that continuity is unaffected even if an adversary disables one or more of our satellites.
  • Combating Hazards
    • Additionally, space technology can also serve as real-time monitoring and early-warning solutions against natural disasters such as earthquakes, tsunamis, floods, wildfires, mining etc.
  • Space-based services
    • 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.

How the privatisation step will be beneficial for ISRO.

  • Investment and expertise
    • In the long run, private sector involvement is believed to help increase investment and expertise in the capital-intensive and high-tech sectors.
  • Fruitful Dissemination of Space Technologies
    • Allowing industries and others like students, researchers, or academic bodies greater access to space assets would lead to much better utilisation of India’s space resources.
  • Technological advancement
    • Commercialisation will also develop better technologies which are essential. 
    • It will allow the integration of many other technologies like artificial intelligence into space exploration activities. 
    • With experience from space activities, the private sector can increase the role of technology in other areas.
  • Risk Sharing
    • Every space launch consists of various risks. 
    • The private sector helps in sharing the risk of the cost factor.
  • Cost-effective
    • The operating costs of setting up bases and launching space vehicles in India are comparatively much less than those of the National Aeronautics and Space Administration (NASA).
    • The privatisation will also ensure that the newer technology makes it more effective in price and efficiency.

Issues and Concerns of private participation in the space industry in India

  • Data Risk
    • Though space allows entrepreneurs raw data of ISRO in the hands of the public is sensitive and consists of the danger of misuse or improper utilisation of data.
  • Unfair commercial practices
    • Allowing the private sector may lead to lobbying and unfair means to get space projects or launch any satellite for profit.
  • Revenue loss
    • ISRO will lose a fair amount of money it earns through its space activities. This will reduce government revenue.
  • India’s security
    • The leakage of sensitive information by private players to other countries and terrorist organisations has affected India’s security.

The Government initiatives:

  • New Space India Initiative:
    • The commercial arm of ISRO is aimed at the production and marketing of space-based services, including launch services and space-based applications like transponder leasing, remote sensing, and mission support services. 
    • NewSpace India will enable better collaboration with start-ups and private sector players without the hassle of government intervention
  • Spacecom Policy 2020:
    • It will provide a framework for companies operating in the space come domain to launch space broadband services in India via the low-earth orbit (LEO) and medium earth orbit (MEO)
  • IN SPACe
    • It is a nodal agency that acts as a promoter and regulator of all space-related activities. 
    • IN-SPACe will work closely with private players to ensure greater collaboration with the private sector, sharing resources and facilities, fast-track approvals etc.
  • Budget 2022-23
    • The Centre earmarked Rs 13,700 crore for the Department of Space (DoS) in the Union Budget 2022-23.

Pic Courtesy: freepik

Content Source: The Hindu

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Consider the following statements.

  1. In order to control the commercial usage of satellites, orbital slots, and ground stations for communication needs, the New Space India Limited was established.
  2. The establishment of the Indian National Space Promotion and Authorization Center (IN–SPACe) was announced in  2015.

Which of the statements given above is/are correct?

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