Recently, the Australian government has signed an $18-million memorandum of understanding (MoU) with the Indian Space Research Organisation’s (Isro’s)
- As part of the deal with NewSpace India Limited (ISRO’s commercial arm), Australian company Space Machines will launch a satellite aboard ISRO’s SSLV in 2026
- This deal is India’s first cross-border investments in the space sector since it was privatised in 2020.
Potential of India’s Space Sector
New Space India Limited (NSIL)
- It was incorporated in 2019, as a wholly-owned Government of India Undertaking / Central Public Sector Enterprise (CPSE), under the administrative control of the Department of Space (DOS) to commercially exploit the research and development work of Indian Space Research Organisation (ISRO).
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- Indian National Space Promotion and Authorization Centre (IN-SPACe) unveiled the decadal vision and strategy for the Indian space economy
- As per IN-SPACe’s projection, India’s space economy has the potential to reach ₹35,200 crore ($44 billion) by 2033 with about 8% of the global share.
- At present: Indian space economy is valued at around ₹6,700 crore ($8.4 billion) with a 2% share in the global space economy.
- Export market share is ₹2,400 crore ($0.3 billion)
- Aim: To increase the domestic share to ₹26,400 crore ($33 billion), and the export share to ₹88,000 crore ($11 billion).
- An investment of ₹17,600 crore ($22 billion) is envisioned in the next 10 years
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Privatisation Of Space Sector
Following are the progress made in the direction of Privatisation:
IN-SPACe
- It is the single-window, autonomous, nodal agency under the Department of Space. The decadal vision and strategy has been developed by IN-SPACe and ISRO along with other stakeholders.
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- Indian Space Policy 2023: It formally laid down the regulations for privatising space missions in India, and also denoted clear guidelines of operations for NewSpace India Limited (Nsil) — Isro’s commercial arm and Indian National Space Promotion and Authorization Centre (IN-SPACe).
- Private startups can communication thus offer satellite services, operate on-ground mission control centres, place their own satellites in orbit, establish and commercially-run privately-owned remote satellite services, undertake space safety projects, and also “engage in the commercial recovery of an asteroid resource or a space resource.”
- India is opening its space sector to foreign investment: Government hints that India will allow 100% foreign direct investment in the manufacture of satellite systems without official approval
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- Eased the rules for launch vehicles aiming for a greater share of the global space market.
- This will give India access to the latest tech advances and much-needed funds, not only from the country but from international investors too.
- SSLV’s privatisation is still underway: Bidders have been identified, but a final decision is yet to be taken. Once completed, SSLV will be manufactured and operated by the private sector.
What Are The Advantages Of Privatisation?
- Reduces ISRO’s burden: Private participation will free up ISRO to concentrate on science, research and development, interplanetary exploration, and strategic launches.
- India’s private space economy has attracted $370 million in investments to date, with Hyderabad-based space launch vehicle provider Skyroot Aerospace leading the pack at $95 million.
- Space economies progress: Going forward, the gap between the strategic and civilian space industries is decreasing. This will be of help as our space economies progress.
- Policy Framework and Goals: The Private Sector participation will help India increase its share in the global space economy from about 2 per cent to 9 percent by 2030, according to a recent report by Deloitte India.
- The Indian Space Policy 2023 provides a framework that prioritizes private players’ involvement in the space sector.
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Challenges to Space Sector in India
- Lack of internal demand is hurting the sector
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- India’s space economy has a dearth of commercial space projects from the central government and its agencies.
- This deal is India’s first cross-border investments in the space sector since it was privatised in 2020.
- Lack of Capacity Building
Small Satellite Launch Vehicle (SSLV)
- It is a 3 stage Launch Vehicle configured with three Solid Propulsion Stages and liquid propulsion based Velocity Trimming Module (VTM) as a terminal stage.
- SSLV is 2m in diameter and 34m in length with lift off weight of ~120 tonnes.
- SSLV is capable of launching ~500kg satellite in 500km planar orbit.
- Key features of SSLV: Low cost, with low turn-around time, flexibility in accommodating multiple satellites, Launch on demand feasibility, minimal launch infrastructure requirements, etc.
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- While Isro has the LVM-3 as its heaviest rocket, we need more capacity and capability to be able to carry our futuristic projects like reaching lunar orbit and land back on Earth.
- Access to insurance: There also is a lack of adequate and secured insurance, which is because of the inability of insurers to see and test the reliability of space-based technologies in the recent past
- Ability to create self-sustaining markets: An inability to forge self-sustaining commercial markets in the past puts into question the commercial viability of space-based enterprises.
- For Instance, Two decades ago, the commercial satellite business was expected to achieve independence within a few years of being established, but government involvement is still needed to this day to see projects to the execution phase.
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June 27, 2024
