Space Policy 2022 in the offing, but industry has concerns on insurance

At present, India accounts for only about 2% of the space economy

Even as the Department of Space is set to come out with a new policy to facilitate greater entry of private firms in the space sector, there are industry concerns on how the private satellites or launch vehicles would be insured and whether the government would have any involvement in insuring the space assets created by private firms.

The Space Policy 2022, prepared after extensive consultation with the stakeholders from the industry is in the final stage. Once out, it will spell the role of the private sector in satellite communication, remote sensing and technology transfer.

"The space policy is in the works. Though we have not been using it much, the new technology of low earth orbit (LEO) satellites is a low-cost game. There are a huge number of satellites in LEO. This will change the space sector," Principal Scientific Advisor Ajay Kumar Sood said last week.

The government, Sood said, would encourage the manufacturing of satellites in the private sector for a range of applications from health care, agriculture to urban development and property tax estimation.

“We will need more deliberation on the aspect of insurance. The cost of launch vehicles and satellites will increase significantly rendering them economically non-viable if they are to be insured by the private companies" Lt Gen AK Bhatt (retd) director-general, Indian Space association told DH.

Prime Minister Narendra Modi is likely to share the government's views on the space sector when he inaugurates the IN-SPACe headquarters in Ahmedabad on Friday.

Creation of IN-SPACe (Indian National Space Promotion and Authorisation Centre) to act as a promoter of space activities by the non-governmental and private entities along with New Space India Limited – the public sector undertaking of the Department of Space – to 'own' the operational launch vehicle and space assets of ISRO are part of the reforms that the Centre had undertaken in the space sector.

The policy would be followed by the much-awaited space law, which is pending for a long time. The 2017 draft of the law needs a revision of the text. Also the industry demand is to have a relook at the penal provisions of the law.

According to the Economic Survey, 2021-22, there are currently 101 start-up companies, of which 47 entered into the field in 2021 and 21 in 2020.

“With the private sector participation, the Indian space sector is expected to capture a larger share of the global space economy, which is close to $447 billion in 2020. At present, India accounts for only about 2 per cent of the space economy, much behind the main players – the USA and China,” the Survey said. Five private satellites have been tested by the ISRO so far.

The enhancement of private participation in the Indian space sector happened following a pattern seen across the globe in which space is witnessing a transition from being a government driven sector to an area where the private sector is undertaking end-to-end space activities.