SPACE | IAS GYAN

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Context: Need for reforms

The global space economyis currently valued at about USD 360 billion. Despite being among a few spacefaring nations in the world, India accounts for only about 2% of the space economy.

Background

Over the last two decades, the private sector has played an increasingly important role in other spacefaring countries within the global space economy. Companies like SpaceX, Blue Origin, Virgin Galactic, and Arianespace have revolutionized the spacesector by reducing costs and turnaround time, with innovation and advanced technology. In India however, players within the private space industry have been limited to being vendors or suppliers to the government’s space program. Promoting the private sector will enable the Indian space program to remain cost competitive within the global space market, and thus create several jobs in the space and other related sectors.

Optimal utilization of space technologies can revolutionize delivery of governance services and boost developmental efforts.

Must Read: https://www.iasgyan.in/daily-current-affairs/indias-space-sector

Guiding Principles of Reforms

Enableand promote private enterprises to carry out independent space activities by enabling ease of business through single-window mechanisms, with predictable timelines.
Open up ISROInfrastructure and Technologies
- Facilities pertaining to testing, trackingand telemetry, launch-pads, and laboratories, created by ISRO to enable the private space industry to climb the value chain.
Inspire Youngstersand dreamers. Encouraging students to pursue a career in Science, Technology, Engineering, and Math (STEM).
Public sector to focus on researchand development work
Public sector laboratories in the space sector will focus on research and development, while manufacturing and commercial activities will be done by business entities, across both, the public and private sector.
Previously developed and already mature technologies/ platforms to be transferred to the private sectorthrough Transfer of Technology mechanisms.
Demand-driven approach for development of space assets
- Creation of new assets to be made contingent on confirmation of demand from user agencies/ entities.

Implementation Strategy

Opening the Space Sector

Indian National Space Promotion and Authorization Centre (IN-SPACe)

Created IN-SPACe, as a single-window, independent, nodal agency.
Provide a stable regulatory and policy environment
New business-friendly policy frameworks in areas like remote-sensing, satellite communication,and launch policies have been initiated.

Enhancing the role of New Space India Ltd (NSIL)

NSIL to act as the exclusive public-sector aggregatorfor both demand and supply of space assets/ services on a commercial basis, including imaging, communication transponders, launch services
As a demand aggregator, NSILwill acquire satellites, launch vehicles, and other assets developed by ISRO or the private industry
As a supply aggregator, NSILwill commercialize assets and services like transponder capacity, imaging services, launch capacity, on ISRO-developed satellites and launch vehicles.

Announcement of future opportunities for private sector

ISRO to identify and announce future opportunities in selected science and exploration missions for private sector participation.
Private sector participation to be promoted through part funding by the government.
ISRO to share best-practices, protocols, and relevant technical expertise with the private sector
Transfer of Technologies from Public to Private Sector
NSIL to have an important rolein transfer of technologies/platforms from the public to private
Platforms like PSLVand SSLV have been identified for transfer of technology to the private sector

Impact of reforms

Industries, start-ups, and academiahave welcomed space sector reforms, and the new IN-SPACe mechanism.
More than 40 proposalsfrom start-ups, MSMEs and industries received for future consideration by IN-SPACe.
New Indian Space Associationhas been created to function as the advisory and advocacy group for the Space industry.
On 28 February 2021, NSILconducted its first commercial launch which put19 satellites into orbit on the PSLV-C51 launch vehicle, including 4 satellites through IN-SPACe
6 spacetechnology incubational centres operational at Agartala, Trichy, Jalandhar, Rourkela, Nagpur, and Bhopal.

Private entities in the space business in India