A New Chapter In Indian Space History

The recent moves by the Union Government will enthuse dozens of startups’ and scores of small and medium enterprises, which have come up in the past decade riding on a spirit of adventure and global business opportunities. It can also attract the large conglomerates like the Ambani’s, Adanis, Tata’s or high net worth industrialists etc in a big way into the Indian space sector, writes M Somasekhar.

The Union Government’s decision to allow greater and independent role for the private sector in space is a long awaited and welcome move indeed.

The policy, which intends to facilitate private players to build satellites, their own launch pad and jointly develop space technologies will give the expected fillip to the Indian Space Research Organisation’s (ISRO) and India’s long term space ambitions.

The policy has been in the works and flows well with the trajectory of growth that the 50 year old Indian Space programme has been following with the mission of harnessing technologies for the welfare of the common man.

The expert committee headed by former chief of BrahMos (India-Russian jV), Sivathanu Pillai had a couple of years ago recommended select entry into launch vehicles, satellite building etc.

The ISRO, which pilots the country’s space programme has achieved tremendous progress in launching communication and earth observation satellites, building launch vehicles like the PSLV (Polar Satellite Launch Vehicle) and probes for the Moon and Mars.

The impressive strides made by India have also got it a rightful place in the select nations like the US, Russia, China, France, EU etc to be a space force to reckon with. However, two big challenges confront the Indian Space march in the future—limited funding and global competition arising out of the entry of big players like SpaceX and Blue Origin.

In this background, the entry of private players, investments and the technical expertise they can bring in could come in handy for the country to withstand and grow as a space power. This will also open up new opportunities for investments, jobs and entrepreneurship for the young.

By unlocking the sector, the Union Government has now opened up opportunities for private companies to independently build satellites and use launch pad facilities at the Satish Dhawan Space Port in SHAR, Sriharikota.

The recent moves will particularly enthuse dozens of startups’ and scores of small & medium enterprises, which have come up in the past decade riding on a spirit of adventure and global business opportunities. It can also attract the large conglomerates like the Ambani’s, Adanis, Tata’s or high net worth industrialists etc in a big way.

The likelihood of the new policy gaining traction is high as unlike other departments of the Government like defence (DRDO), CSIR, DBT, ICAR, the ISRO has enjoyed a ‘healthy & trusted’ partnership with private sector and academia in many projects right from the initial stages.

About 500 industries ranging from big one’s like Godrej, L&T, Walchandnagar, Ananth Technologies etc., to public sector units like the BEL, MIDHANI, ECIL etc and small and medium enterprises have contributed in making components, systems and important technologies over the past few decades.

Over 90 per cent of the launch vehicle cost is accounted for by indigenised technology and materials. Therefore, the Polar Satellite Launch Vehicle (PSLV) has emerged as the most cost-competitive in the global commercial launch market.

At the same time, the domestic industry has also matured.

Though the elements of the Policy are emerging, it’s clear that the govts intention is to see an expanding space for the private sector. as a major partner.

The New Space India Limited (NSIL), which is designed to have a PSU structure, under the DoS is expected to push the commercial activities and better utilisation of the assets of the ISRO spread across the country.

It’s pertinent to note that through commercial launches, sale of remote sensing data products and satellite based services, the ISRO has been generating revenues.

The ANTRIX Corporation, started in 1992 as the commercial arm has been handling the responsibility. It generated around Rs 1800 crore in 2018-19. Its role needs to be redefined now.

The ISRO’s successes in communication & earth observation satellites have translated into better weather forecasting, agriculture crop monitoring, telecommunications, direct to home transmission, land use management, Ocean monitoring, healthcare, e-empowerment, education, disaster management, security related aspects and navigation.

All of which add up to improving the quality of life and generate economic activity.

By allowing private players, the scope to transfer a wide range of technologies and space services to start ups, entrepreneurs through proper guidelines and technology transfer mechanisms can be created. In most developed nations, the trend is already established.

Move into next Orbit:

By giving the private sector a bigger role, the ISRO too can move into the next orbit in facing the stiff global competition that has emerged in the space race. It can overcome its limitations on funds and accelerated technology developments.

The DoS, for example got an allocation of Rs 13, 479 cr for 2020-21, a rise of 8 percent over the previous fiscal’s Rs 12,473 cr. When you compare this with NASA’ $22.63 billion (2020) and China’s Budget, which was estimated to be 7 times more, it’s simply modest.

If you compare this & look at the present level of investments by private players like L&T, Godrej, Ananth Technologies, Tata’s etc with global biggies like Space X & Blue Origin, Lockheed Martin etc. it will look small.

Now, what are India’s big ticket projects in the present decade—: Chandrayaan-3, Mars Mission-2, the Rs 10,000 cr Gaganyaan (Human in Space), new Space Port, the GSLV Mark III and a series of interplanetary missions starting with Aditya, mission to the Sun in the coming decade.

Global Competition Hots Up:

Since 2010, competition in space has become intense. The entry of cash rich and ambitious players like Elon Musk with his Space X; Jeff Bezos with his Blue Origin, Lockheed Martin etc has accelerated progress with their huge investments and newer technological developments like reusable rockets.

At the same time, more nations have joined the quest for a presence in the space sector. The tiny nation UAE surprised many with the launch of its Mars probe in July. The traditional powers like the US, Russia, European Union, Japan, India, China are stepping on the accelerator.

The multi billion dollar commercial launch vehicle business, the exciting journeys into outer space, colonisation of hospitable planets, tapping space technologies for developments back on earth and space tourism beckon both a challenge and huge investments.

The Road Ahead:

It’s therefore clear that a synergy between the ISRO, private sector and academia with possible investment coming through the Foreign Direct Investments (FDI) can only leapfrog India’s efforts. Though, it’s appropriate to mention here that the experiences on the FDI front have not been particularly pleasant, especially the Antrix-Dewas flop.

The IN-SPACe (Indian National Space Promotion and Authorisation Centre), created recently, is expected to iron out the ‘shortcomings and irritants‘ and ensure level playing field for private companies, especially in the regulatory aspects and use of space infrastructure.

The investments from private sector, the development of GSLV Mark 3 will help India double its annual launches from 35 in 2019 and also put heavier one’s into the Geosynchronous Transfer Orbit, thus saving on costs and becoming self-reliant. COVID 19, has temporarily put launches on hold in 2020.

The scope and space is vast in the universe, but it needs big money, big dreams and billions of dollars for India to shine in this tough space in future.

(M Somasekhar is a Hyderabad-based senior journalist. Views are personal.)