India: Aimed at boosting space economy, 10 ISRO satellites transferred to govt-run NSIL

As part of India's Space sector reforms, the Government of India has transferred 10 operational communication satellites to NewSpace India Limited(NSIL), a Government-run company. This move of transferring ownership of ten satellites of the GSAT series to NSIL, would help the company rent them out(transponder capacity, services etc.) and generate revenue out of the same.

"10 (Ten) in-orbit operational communication satellites viz. GSAT8, GSAT-10, GSAT-12R (CMS-01), GSAT-14, GSAT-15, GSAT-16, GSAT-17, GSAT-18, GSAT-30 and GSAT-31 have been transferred from Government of India to M/s. New Space India Ltd (NSIL), a CPSE under the Department of Space, at a written down value of Rs.4697.60 crores(Rs.46.97billion) against the issue of equity to the Government of India, with 01.04.2021 as the effective date of transfer" the Minister-in-Charge, Dr Jitendra Singh, shared in Parliament.

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This means the transponder capacity on the satellite can be allocated to a customer on a payment basis, thus earning revenue for the Indian government. Simply put, it can be compared to how an Internet service provider sells connections to homes based on the speed limit, data limit etc, likewise the capacity of the satellite is allocated to niche customers such as telecommunications companies, broadcasters etc.

In this case, the Board of NSIL is authorized to price the transponder capacity as per the global trends. NSIL shall carry out the activities related to offering and allocation of capacity, as per the guidelines to be adopted by its Board.

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The goal of carrying out such business activities is to enhance India's share of the $440bn global space economy. Notably, India's share is estimated to be less than 2% of the above. India's Space sector reforms that are being rolled out since 2020 are also meant to enhance the same. As part of this, the Department of Space, Government of India established the Indian National Space Promotion & Authorization Centre (INSPACe) to be a single window agency to promote, handhold and authorize the activities of private entities in the sector, thus providing them with a level playing field.

Until 2020, India's private space industries were only supplying components and providing services to the state-run Indian Space Research Organization(ISRO). However, the reforms are aimed at enabling private companies to build and launch their own rockets and satellites from Indian soil and provide allied services.

Earlier, when queried about the much-awaited Space Policy, Dr S.Somanath, Chairman, ISRO and Secretary, Dept of Space, replied that the internal review was complete and that the cabinet approval was pending and the final approval could be expected very soon. He added that the Space Policy was meant to create clarity on the private sector's ability to build its own rockets and satellites. "The bill is targeted to give teeth to Indian National Space Promotion and Authorization Center (IN-SPACe)" he said.

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