In a recent development, the Government of India has authorized the transfer of 10 communication satellites, currently in orbit, to NewSpace India Ltd (NSIL). This excludes the GSAT-7 and 7A from the GSAT series. The shift is aimed at supporting businesses keen on developing downstream satcom operations. Additionally, NSIL already directs the new CMS (communication satellite) series. To further bolster the space agency’s financial capacity, its authorized share capital has been increased from Rs 1,000 crore to Rs 7,500 crore.
Implications of the Satellite Transfer
This significant transition of assets carries several potential benefits for both NSIL and the nation’s economy.
Economic Freedom and Employment Opportunities
The asset transfer will give NSIL increased financial freedom, thereby allowing the realization of capital-intensive projects. As a result, the move opens up possibilities for substantial employment and encourages technology transfer to other economic sectors.
Enhancing Domestic Space Sector Activity
The government’s approval aims to spur domestic economic activity in the space sector. It also positions India to potentially secure a larger portion of the global space market.
Facilitating Business in the Space Sector
NSIL’s role as a single-window operator will simplify business operations in the space sector. The NSIL Board will now be able to price transponders according to market dynamics and global trends in the Satellite Communication sector. It can also offer and allocate capacity based on its internal policies and guidelines.
Four Pillars of Space Reforms
Under the Space Sector reforms, NSIL was mandated to manage comprehensive commercial space activities and function as a full-fledged satellite operator. The reforms are founded on four pillars:
Freedom of Innovation for the Private Sector
The reforms promote innovation within the private sector by providing them with the necessary freedom.
Government as an Enabler
The government plays a vital role in facilitating these reforms and fostering growth in the space sector.
Formation of the Indian Space Association (ISpA)
The establishment of the ISpA aims to represent the collective voice of the Indian Space Industry. It envisions preparing the youth for the future of space technology, evidenced by the recent launch of the ATL Space Challenge 2021.
Space Sector as a Common Resource
Projects monitored by satellite imaging, space technology used in settling Fasal Bima Yojana claims, disaster management planning, and the NAVIC system aiding fishermen underscore the space sector’s value as a resource for common man progress.
Understanding NewSpace India Ltd (NSIL)
Established in 2019, NSIL operates as the commercial arm of the Indian Space Research Organisation (ISRO) under the Department of Space’s administrative control. The Bengaluru-based Central Public Sector Enterprise of the Government of India primarily enables Indian industries to undertake high-tech space-related activities. Its mission includes owning earth observation and communication application satellites, building satellites and launching them based on demand, and offering space-based services commercially. NSIL also facilitates the transfer of technology to the Indian industry.
UPSC Civil Services Examination, Previous Year Question (PYQ)
Given the recent focus on the space sector, prospective candidates for the UPSC Civil Services Examination must familiarize themselves with India’s satellite launch vehicles and their specific functions. An example of a relevant question from the 2018 examination illustrates this need for knowledge. The question pertains to the functions and features of PSLVs and GSLVs, which are pivotal in launching satellites for Earth resources monitoring and communication, respectively. The correct answer to the question is option (a), which correctly states that PSLVs launch the satellites useful for Earth resources monitoring, whereas GSLVs are designed mainly to launch communication satellites.
