A Ground View of the Indian Space Policy 2023

Why in News?

• The Indian Space Research Organisation (ISRO) released the Indian Space Policy 2023, which envisages "encouraging, enabling and developing a flourishing commercial presence in space."
• However, a few issues remain and India must address them to fully extract the benefits in the Second Space Age.

 

India's Space Ages and its space economy

• First Space Age
  • India’s space industry and space economy were defined by ISRO until early 1990s.
  • Private sector involvement was limited to building to ISRO designs and specifications.
• Second Space Age: The Second Space Age began with the licensing of private TV channels, the explosive growth of the Internet, mobile telephony, and the emergence of the smartphone.

 

India's Space Economy

• Today, while ISRO’s budget is approximately $1.6 billion, India’s space economy is over $9.6 billion.
• Broadband, OTT and 5G promise a double-digit annual growth in satellite-based services.
• With an enabling environment, the Indian space industry could grow to $60 billion by 2030, directly creating more than two lakh jobs.

 

Earlier Policies and Their Drawbacks

• First satellite communication policy
  • The policy was introduced in 1997, with guidelines for foreign direct investment (FDI) in the satellite industry.
  • However, even after further liberalising, this policy never generated much enthusiasm.
  • Today, more than half the transponders beaming TV signals into Indian homes are hosted on foreign satellites.
  • As a result, there is an annual outflow of over half a billion dollars.
• Remote sensing data policy
  • It was introduced in 2001, amended in 2011, 2016, and was replaced by a National Geospatial Policy that has been further liberalised in 2022.
  • Yet, Indian users including the security and defence agencies spend nearly a billion dollars annually to procure earth observation data and imagery from foreign sources.
• Space Activities Bill
  • To streamline affairs and speed up the process, a draft Space Activities Bill was brought out in 2017, which went through a long consultative process.
  • It lapsed in 2019 with the outgoing Lok Sabha.
  • The government was expected to introduce a new Bill by 2021, but it appears to have contented itself with the new policy statement.

 

How is the Space Policy 2023 different from earlier policies?

• It is an acceptance to the fact that the private sector is a critical stakeholder in the entire value chain of the space economy.
• Focusing on civilian and peaceful applications: There is only one reference to ‘security’ in the document makes it clear that the focus is on civilian and peaceful applications.
• Different mechanism for security purpose: Security agencies can task non-governmental entities (NGEs) for procuring tailor-made solutions to address specific requirements.
• Different roles for departments and agencies
  • The policy lays out a strategy which assigns the roles of the Department of Space, ISRO, the Indian National Space Promotion and Authorisation Centre (IN-SPACe) set up in 2020.
  • The New Space India Limited (NSIL), a public sector unit set up in 2019 under the Department of Space as the commercial arm of ISRO to replace the now defunct Antrix.
• Directs ISRO’s focus only on R&D
  • ISRO will transition out of the existing practice of being present in the manufacturing of operational space systems.
  • ISRO shall focus on R&D in advanced technology, proving newer systems and realisation of space objects for meeting national prerogatives.
  • Another ISRO’s task is to “share technologies, products, processes, and best practices with NGEs and/or Government companies.
  • ISRO will now use its biggest asset, its qualified and talented manpower, to concentrate on cutting edge research and development and long-term projects such as Chandrayaan and Gaganyaan.
• Role of NSIL: As ISRO’s commercial arm, NSIL will become the interface for interacting with the industry, undertake commercial negotiations and provide hand-holding support to ensure smooth and efficient transfer of technologies.
• Induction of NGEs
  • Now the NGEs are allowed to undertake end-to-end activities in the space sector through establishment and operation of space objects, ground-based assets and related services, such as communication, remote sensing, navigation, etc.
  • Satellites could be self-owned, procured or leased; communication services could be over India or outside; and remote sensing data could be disseminated in India or abroad.
  • NGEs can design and operate launch vehicles for space transportation and establish their own infrastructure.
  • NGEs can now make filings with the International Telecommunication Union (ITU) and engage in commercial recovery of asteroid resources.
• Specified role of IN-SPACe
  • The activities of the NGEs will be in keeping with guidelines and regulation to be issued by IN-SPACe.
  • It is expected to act as the single window agency for authorising space activities “by government entities and NGEs”, in keeping with safety, security, international obligations and overall national interests.
  • Finally, IN-SPACe is expected to create a “stable and predictable regulatory framework” that will ensure a level playing field for the NGEs.
  • It will act as a promoter by setting up industry clusters and as the regulator, issue guidelines on liability issues.

 

Gaps in the new policy - Lack of a timeframe and ambiguous role of IN-SPACe

• The new policy does not provide a time frame for the necessary steps ahead.
• Neither is there an indicative timeline for ISRO’s transitioning out of its current practices nor is there a schedule for IN-SPACe to create the regulatory framework.

 

Advice on how to fill the gaps

• Clear Rules and Regulations: The policy framework will need clear rules and regulations pertaining to FDI and licensing, government procurement to sustain the new space start-ups.
• Fixing the liability: There should be a provision of liability in case of violations and an appellate framework for dispute settlement.
• Formation of a statutory regulator
  • IN-SPACe is expected to authorise space activities for all, both government and non-government entities.
  • Currently, its position is ambiguous as it functions under the purview of the Department of Space. The Secretary (Space) is also Chairman of ISRO, the government entity to be regulated by IN-SPACe.
  • To make It more efficient the government should anticipate forming a statutory body for IN-SPACe on the lines of the Reserve Bank of India, Securities and Exchange Board of India (SEBI).

 

Conclusion

• The Space Policy 2023 is a forward-looking document reflecting good intentions and a vision. But it is not enough.
• A time frame is urgently needed to provide the necessary legal framework to translate this vision into reality, to successfully launch India into the Second Space Age.

 

---

Q) Why is the role of National Space Promotion and Authorization Center (IN-SPACe) important? 

IN-SPACe is responsible to promote, enable and supervise various space activities of non-governmental entities including building launch vehicles & satellites and providing space-based services; sharing space infrastructure and premises under the control of DOS/ISRO; and establishing of new space infrastructure and facilities. The agency acts as an interface between ISRO and Non-Governmental Entities (NGEs) and assesses how to utilise India's space resources better and increase space-based activities. It also assesses the needs and demands of private players, including educational and research institutions, and explores ways to accommodate these requirements in consultation with ISRO.

 

Q) What is Antrix? 

Antrix Corporation Limited (ACL), Bengaluru is a wholly owned Government of India Company under the administrative control of the Department of Space. Antrix Corporation Limited was incorporated as a private limited company owned by Government of India in September 1992 as a Marketing arm of ISRO for promotion and commercial exploitation of space products, technical consultancy services and transfer of technologies developed by ISRO. Another major objective is to facilitate development of space related industrial capabilities in India.

 

---

Source: The Hindu