Centre opens up space sector for private companies; Creates new agency for hand-holding

The Centre on Wednesday opened up the closely guarded space sector to the private industry with the Union Cabinet approving “far reaching reforms” in the strategic area to boost private sector participation.

The policy reforms will not only unlock the Indian space infrastructure for private companies foraying into the space segment, but will also open up “some of the planetary exploration missions” for the private sector, according to an official statement.

For the hand-holding, the Union Cabinet approved creation of a new agency named Indian National Space Promotion and Authorization Centre whose mandate will be to provide a level playing field for private companies to use the existing space infrastructure.

It will also promote and guide the private industries in space activities through encouraging policies and a friendly regulatory environment.

The new agency will function in tandem with the Department of Space’s new public sector enterprise New Space India Limited whose mandate is to improve industry participation in the Indian space programme.

The government announcement, however, is silent on the proposed National Space Law on which the Indian Space Research Organisation was working for the last six years. Among other things, the law was meant to provide a legal support to private sector’s entry into the space programmes that comes directly under the Prime Minister’s Office.

Space activities in India are completely under the government with the private sector serving as a supplier. In recent years, many proposals from private firms to launch satellites and carry out downstream applications are stuck in the ISRO for lack of policy and absence of a law.

In contrast, private firms in the USA and Europe make satellites and operate launch vehicles for commercial activities, leaving the government agencies free for deep space explorations.

These new reforms will allow Indian Space Research Organisation to focus more on research and development activities, innovative technologies, exploration missions and human spaceflight programme as some of the routine activities would be left for the industry.

The private sector participation in the planetary exploration missions will be done through an ‘announcement of opportunity’ mechanism, says the statement.

Greater participation of the private sector may also leave the government with an opportunity to slash its own budget as the industry may pick up the tab for some of the activities.