Budget 2019 India: Given that space is a $350-billion industry, as per a Morgan Stanley report, it is not surprising that India and other nations are vying for it. In fact, with the recent achievements of the Indian Space Research Organisation (Isro) — from the launch of 104 satellites by its Polar
Satellite Launch Vehicle (PSLV) C37 in a single mission to the development and successful deployment of the South Asia Satellite for communications — India has earned a place in the elite club of nations with advanced space capabilities. Its recent attempt with Mission Shakti has further cemented its position.
The finance minister’s announcement regarding the launch of a new commercial space enterprise New Space India (NSIL), therefore, comes at an opportune time. The enterprise launched in May this year will help private players partner with NSIL at a time when Isro was looking at more private partnerships for the production of its PSLV and Small Satellite Launch Vehicle (SSLV) category.
“India has emerged as a major space power with the technology and ability to launch satellites and other space products at globally low cost. Time has come to harness this ability commercially — a public-sector enterprise viz New Space India has been incorporated as a new commercial arm of the department of space to tap the benefits of the research and development carried out by Isro. The company will spearhead commercialisation of various space products, including the production of launch vehicles, transfer to technologies and marketing of space products,” finance minister Nirmala Sitharaman said.
More so, the announcement assumes much more importance as space and satellite programmes form one of the 10 visions of the government to become a $5-trillion economy.
What is confounding, though, is the role NSIL is to play, given that Isro and the department of space already have a commercial arm, Antrix Corporation, which despite scandals and run-ins with international organisations has been successfully involved in technology transfers and forging private partnerships.
Isro has already begun technology transfer to an industry consortium that includes Godrej Aerospace, L&T, and even public-sector Hindustan Aeronautics. Whether Antrix gets subsumed or remains a separate entity is something that remains to be seen, but the launch of a new company would signal the intent of Isro’s readiness to conduct business in front of the private industry.
With Antrix facing legacy issues such as overlapping management with Isro and bureaucratic handling, NSIL may also bring forth a fresh approach. As commercial ventures from the US and Europe, like SpaceX, are already gaining currency, India needs to move fast if it is to gain any advantage over advanced economies in global space competition, especially in the low-cost segment. Isro, and more specifically India, can’t afford to lose out owing to bureaucratic entanglement.