Entry of Private Players in the Indian Space Sector

Table of Contents☰

What’s in today’s article?

Why in News?
Opening up Indian Space Sector for Private Sector
Indian Regulatory Framework for Private Space Companies
NSIL Calling Private Players to Manufacture LVM3

Why in News?

The commercial arm of the department of space (DoS) – New Space India Limited (NSIL), has called on private players to manufacture its largest launch vehicle LVM3.
This is the same launch vehicle that carried Chandrayaan-2 and Chandrayaan-3 to the moon, and it will also be utilised for the Gaganyaan (human spaceflight) mission.

Opening up Indian Space Sector for Private Sector:

The DOS desires to encourage the participation of private companies in space activities.
- This is to enhance the diffusion of space technology and boost space economy (from current $8 billion/ 2% of global space economy to $100 billion by 2040) within the country,
As a result, start-ups began to take root in India in the early 2010s with the first space start-up, Dhruva Space Private Limited, being established in 2012 in Hyderabad.
- Soon after, several other space start-ups cropped up in India: Bellatrix Aerospace (2015), Manastu Space (2017), Skyroot Aerospace (2018), etc.
As of date, over 200 space start-ups are registered in the country, attracting investments worth ₹1000 crore in 2023 itself.
Most of these companies are involved in designing and manufacturing satellites, launch vehicles, etc., and offer launch services using ISRO’s PSLV/GSLV or private launch vehicles.

Indian Regulatory Framework for Private Space Companies:

NewSpace India Limited (NSIL):
- It is a Public Sector Undertaking (PSU) of the Government of India under DoS and is responsible for producing, assembling and integrating the launch vehicle with the help of industry consortium.
- It was established in 2019 under the Company Act 2013, with the main objective to scale up private sector participation in Indian space programmes.
- In 2022, the agency called for complete manufacturing of its workhorse Polar Satellite Launch Vehicle (PSLV).
- A consortium of HAL and L&T has been selected to manufacture five PSLV, with the first flight of the privately manufactured vehicle likely this year.
Indian National Space Promotion and Authorization Center (IN-SPACe):
- As part of the 4th ‘Aatma Nirbhar Bharat Abhiyan’ stimulus, the Union Finance Minister announced the creation of IN-SPACe in 2020.
- IN-SPACe was set up as a single-window, independent, nodal agency to authorise, promote and supervise space activities of private non-governmental entities (NGEs).
- Since its establishment, IN-SPACe has signed 45 MoUs with NGEs to support them in space activities.
National Geospatial Policy:
- In 2021, Centre issued guidelines for private companies to acquire all geospatial data and maps from government agencies without licences.
- Building on these guidelines, the Centre also unveiled the National Geospatial Policy in 2022. The policy promotes private sector participation in collection of geospatial data.
Indian Space Policy:
- Strengthening the private space sector in India by finally providing a legislative framework, the Centre rolled out the Indian Space Policy in 2023.
- The policy has paved the way for ISRO to transition from manufacturing operational space systems to a focus on research and development in advanced technologies.
Amended FDI policy: In 2024, Centre amended its FDI policy, allowing –
- Up to 74% FDI for satellite manufacturing and operation,
- Up to 49% FDI for launch vehicles, spaceports and associated systems and
- 100% FDI to manufacture components and systems/subsystems for satellites, ground and user segments.

NSIL Calling Private Players to Manufacture LVM3:

About Launch Vehicle Mark-3 (LVM3):
- The LVM3 (previously GSLV Mk III) is the new heavy lift launch vehicle of ISRO for achieving a 4000 kg spacecraft launching capability to GTO (Geosynchronous Transfer Orbit) in a cost-effective manner.
- LVM3 is a three-stage launch vehicle consisting of two solid propellant S200 strap-ons and core stages comprising of L110 liquid stage and C25 cryogenic stage.
The commercial capability of the LVM3:
- It was first demonstrated when it was used to deploy multiple satellites in low earth orbit (LEO).
- Two batches of 36 satellites each were launched using the vehicle in 2022 and 2023 commercially for internet provider OneWeb.
- Not only did the vehicle deploy multiple satellites for the first time, it did so in different orbits during the missions.
Why NSIL Looking Towards Private Players?
- NSIL recognises that there is a growing demand for launching heavier communications satellites as well as other satellites to LEO.
- This is in line with the government’s vision to increase participation of private players, making them capable of manufacturing complete launch vehicles instead of remaining mere producers of parts.
How will NSIL Handover Projects to Private Players? NSIL will conduct a two-stage bidding process – shortlist multiple technically qualified manufacturers and then select one company based on their financial competitiveness.