The Indian Space Research Organisation (ISRO) successfully launched India’s most advanced Earth-imaging satellite, Cartosat-3, about ten days ago from Sriharikota in Andhra Pradesh. In his post-launch speech, ISRO Chairman K Sivan said the organisation has 13 more missions, six launch vehicle events and seven satellite missions planned till March 2020.

The crowded calendar is not surprising at all. ISRO's Polar Satellite Launch Vehicles (PSLVs) have been doing a commendable job in the past few years – Cartostat-3 was launched on PSLV C-47 -- and providing reliable launches to multiple satellites from around the world. In the process, in fact, ISRO has been competing with the likes of SpaceX and United Launch Alliance.

However, while ISRO is doing an excellent job, it is worth considering why the participation of private space companies from India is still very limited. A month ago, SpaceX launched 60 Starlink satellites (part of the ambitious plan to launch 42,000 satellites to low-earth orbits to provide high-speed Internet coverage to the world) on its Falcon 9 launcher. Can we expect private Indian space companies too to provide launches, build satellite constellations and provide human space transportation sometime in the future?



NewSpace startups find roots

The encouraging development is that over the past five years we have seen many NewSpace (companies working independently of government space programs and not as suppliers or contractors) startups coming up across the space value chain. For example, Skyroot Aerospace is developing a small satellite launch vehicle; Astrome Technologies aims to provide satellite constellation-based Internet connectivity; Pixxel is building a nanosatellite constellation for earth imagery, and Bellatrix Aerospace is researching new-age propulsion systems. Currently, there are about 25 NewSpace startups in India. The critical question to ask here is, how do we enable these companies to mature into globally competitive space players? How do we build our very own SpaceX?



At the outset, we must understand that space is an inherently difficult sector to do business in because of the long gestation periods and significant capital requirements. However, today, with space being an enabler to various applications like Direct-to-Home broadcasting, real-time navigation, telecommunication, services based on Earth imaging and so forth, the government space agency, by itself, does not have the capacity (in terms of capital, skilled labour and equipment) to develop and exploit all these benefits. This makes a strong case for unlocking the potential of private capital and skills.

Even government initiatives such as Digital India, Smart Cities are dependent on high-quality Internet access in remote corners of the country. Comprehensive geospatial data, images and analyses are essential for weather forecasting, disaster management and urban and rural infrastructure planning. Low-latency Internet provision, geospatial data generation are just the tip of the iceberg when it comes to the requirements of a rapidly developing India. Private-sector space activity is, thus, deeply linked to India’s prosperity.

Currently, ISRO is a research centre, a service delivery organisation, and a regulator. ISRO is a player in the market and is also the umpire granting licenses to private players. This concentration of power not only results in a conflict of interest but is also not appropriate from an institutional design perspective. An enabling civil space policy that can provide a clear institutional framework and create an environment where private players are supported and encouraged is essential. India’s space policy must incorporate the following key ideas to provide a clear and transparent policy framework for private participation.



Steps to enabling private participation

First, we need to establish an independent space regulatory authority that is tasked with prescribing rules for carrying out space activities from Indian land. This authority, let’s call it Space Regulatory Authority of India (SRAI), should carry out licensing in a fair and transparent manner and also monitor and ensure that the authorised players comply with rules and regulations.



An important consideration here is that distinct regulations should be set for players involved in different parts of the space value chain. A company that provides launch services, a manufacturer of communications satellite and an organisation that creates value-added products from data collected from Earth-imaging satellites have very different risk profiles. Thus, a blanket, one size fits all regulatory regime, as the Draft Space Activities Bill, 2017 prescribes, does not benefit anyone.



Second, the policy needs to establish a Space Disputes Settlement and Appellate Tribunal (SDSAT) to settle appeals against SRAI and to adjudicate disputes between licensors, licensees, consumers or service providers in the space sector. Since space is a highly technical field, a specialised body, comprising of people with sound knowledge and deep experience in the sector, would not only help resolve complex issues but also provide faster resolution of disputes. Any decision of the SRAI should be challengeable in the SDSAT. Also, any party not satisfied with SDSAT’s ruling should be able to find legal recourse from higher courts.



Third, hiving off a PSU called the Space Corporation of India (SCI) from ISRO, to carry out all the commercial activities of ISRO, is required. This would include manufacturing, maintenance, and operation of launch vehicles and satellite systems (communications, Earth-imaging, and navigation), used exclusively for commercial purposes and built on legacy technologies of the ISRO. This organisation would compete in the domestic and international marketplace for launches of private and public spacecraft. ISRO, as the name suggests, would focus on research and developing frontier technologies for space.



Although, there are many other things that a space policy needs to address -- like harmonising international law to manage obligations emanating from the 1967 Outer Space Treaty and other treaties; providing intellectual property rights to inventors and creators and promoting investments, education and R&D in space -- the setting up of an institutional framework with well-defined roles and responsibilities is vital.



If the governance of space activities is not reformed, we would not only kill the nascent startups in their infancy but also hinder India’s shot at a prosperous future.

(Utkarsh Narain is a Technology-Policy researcher at the Takshashila Institution, Bengaluru)

The views expressed above are the author’s own. They do not necessarily reflect the views of DH