Relevance: GS-3: Achievements of Indians in science & technology; indigenization of technology and developing new technology.

Key phrases: ISRO, NSIL, IN-SPACe, Draft National Space Policy 2020, humans in space policy 2021

Why in News?

• Even as India is readying to launch humans in space in the next couple of years, the government is likely to tweak its draft Humans in Space Policy 2021 document to include private spacetech startups in the programme, say industry experts.

Space industry in India:

• India’s space programme is one of the most well-developed in the world and is driven by a state-owned agency—the Indian Space Research Organisation (ISRO).
• The current global space economy is estimated at US$ 360 billion, with India accounting for ~2% (US$ 7 billion). The Indian space sector is projected to increase at a ~48% CAGR over the next five years to reach US$ 50 billion.
• In the global space market, rocket and satellite launch services—an area in which ISRO specialises—amount to only 5% share. This segment requires robust infrastructure and heavy investments. Satellite-based services and ground-based systems account for the remaining 95%.
• At present, the government drives a certain level of participation by the Indian private sector, primarily in the rocket and satellite launch services segment. However, enhanced private sector participation will be necessary to penetrate satellite-based services and ground-based system segments.

What is the significance of private player involvement in space sector?

• Their involvement will allow ISRO to focus more on new technologies, exploration missions and human spaceflight programme. Like NASA.
• Private sector participation will open a new pool of resources and talent.
• Some of the planetary exploration missions will also be opened up to the private sector through an ‘announcement of opportunity’ mechanism.
• Allowing industries and others like students, researchers or academic bodies greater access to space assets would lead to a much better utilisation of India space resources.
• It will enable Indian Industry to be an important player in the global space economy. With this, there is an opportunity for large-scale employment in the technology sector and India becoming a Global technology powerhouse.
• Restricting space activities to ISRO, limits proper utilisation of talent all over the country. With demographic dividend, private sector participation can exploit the talent across the nation contributing a lot to space explorations in India.

Government step to inclusion of private player in space industry:

• Several steps have been initiated towards opening the space sector for private entities in a phased manner.
  • In the 2019 budget, the government announced the setting up of New Space India Limited (NSIL) with a mandate to mass-produce and manufacture small satellite launch vehicles (SSLVs) and polar satellite launch vehicles (PSLVs) in partnership with the private sector through technology transfer.
  • The Draft National Space Policy 2020 was thus unveiled with the aim to increase public-private partnerships in space research and exploration activities. Instead of only partnering on the manufacturing and logistical side of operations earlier, private players were now given access to ISRO's infrastructure, technical resources and data to grow.
  • In addition, the Union Cabinet in 2020 approved the creation of the Indian National Space Promotion and Authorisation Centre (IN-SPACe) to act as a single-window, independent nodal agency between ISRO and private entities to utilise India’s space resources efficiently.
  • Recently, India's space agency unveiled a draft "Humans In Space Policy 2021" that would look at facilitating participation of non-traditional players in undertaking space activities.

Challenges:

• Even though the government has undertaken steps to boost private sector participation in India, companies are cautiously optimistic and have often cited multiplicity of approvals and procedural ambiguity as barriers. For example, in 2017, Hughes, a US-based company, had announced a US$ 500 million satellite communications system in India. To date, the company has not received any approvals or an expected timeline.
• Multiple bodies Regulation: A satellite company will typically need to obtain approvals from the Department of Space (which is under the Prime Minister's office), ISRO, Antrix (ISRO's commercial arm) and the Committee for Establishment and Operation of Indian Satellite Systems, and in case of communication satellites, the Department of Telecommunications and the Wireless Planning and Coordination Wing (both are under the Ministry of Communications and Information Technology).
• In addition, lack of clear, specific and predictable regulations may also create hurdles for companies raising private capital. Given the long gestation period and capital-intensive nature of space technology, private players would need access to 'patient' capital, which can be achieved from the government or global private equity markets as only these can afford to bet on long-term space initiatives.
• Finally, as ISRO is both a regulator and an operator, this conflict of interest is likely to manifest during dispute resolution between private players and ISRO entities. Even though IN-SPACe is meant to be an independent agency, it falls under the ambit of ISRO and the resulting potential conflicts of interest can be a cause of concern for the private players.

Indian private startups in space industry:

• Several Indian startups have started their operations. Some of the startups include:
  • Digantara: It is an Indian private company working to secure long-term space flight safety by developing space debris tracking and monitoring services.
  • Bellatrix Aerospace: Headquartered in Bangalore, it is an Indian private aerospace manufacturer and small satellite company.
  • Tathya Earth: The company leverages deep learning algorithms for satellite imagery and maritime data to identify important real-time trends in the global economy.
  • Skyroot, another startup founded by two former ISRO scientists. The company is building “Vikram” rockets from scratch, which are the first brand of rockets made by the private sector in India.
  • Agnikul Cosmos, a startup founded by two 21-year-old college students became the world's first company to successfully test a 3D printed rocket engine, which is a new and upcoming tech in the space industry and is predicted to replace conventional assembly models.

Way Forward:

• Despite all challenges, the government's recent decisions are a step in the right direction. Within months of the government opening up the space sector, IN-SPACe received at least 26 proposals from Indian and foreign firms. These proposals ranged from approval for ground stations, setting up satellite constellations, developing and launching satellites & launch vehicles to providing applications. The space sector can play a vital role in realising the dream of ‘Aatmanirbhar Bharat’ and fully the potential of India’s youth and entrepreneurs. Both government and private entities need to work in tandem, and an effective long-term stable policy will be fruitful in the longer run.

Source: Tech circle

Mains Question:

Q. Recently, India's space agency unveiled a draft "humans in space policy 2021" to enhanced private player participation in space industry. Is there a need to inclusion of private player in space industry? What is the hurdles in current regulatory environment to utlize the potential of private player in space industry?