IN-SPACe - Private Space Industry in India

Why in news?

The Government of India has announced the creation of a new ‘Indian National Space Promotion and Authorisation Centre’ (IN-SPACe).

What is IN-SPACe for?

• IN-SPACe will be an autonomous nodal agency under the Department of Space.
• It is expected to be functional within 6 months (from June 2020).
• IN-SPACe is supposed to be a facilitator and a regulator.
• It will act as an interface between ISRO and private parties.
• It will provide the necessary support for the private space industry to conduct its activities.
• IN-SPACe will assess the needs and demands of private players including educational and research institutions.
• It will explore ways to accommodate these requirements in consultation with ISRO.
• It will also assess how best to utilise India’s space resources and increase space-based activities.
• Existing ISRO infrastructure, scientific and technical resources and even data are planned to be made accessible to interested parties.
• [The infrastructure includes both ground- and space-based.]

• The decision comes as a part of an important set of reforms to open up the space sector.
• The objective is to make space-based applications and services more widely accessible to everyone.

How is India's private sector participation in space industry?

• Currently, there does exist private industry involvement in India’s space sector.
• In fact, a large part of manufacturing and fabrication of rockets and satellites now happens in the private sector.
• There is an increasing participation of research institutions as well.
• However, Indian industry had a barely 3% share in a rapidly growing global space economy.
• Currently, the value of the global space industry is estimated to be $360 billion.
• Only 2% of this market goes for rocket and satellite launch services, which require fairly large infrastructure and heavy investment.
• A huge 95% are related to satellite-based services, and ground-based systems.
• Indian industry, however, is unable to compete.

Why is Indian space industry lagging behind?

• Till now, Indian space industry's role has been mainly that of suppliers of components and sub-systems.
• Indian industries do not have the resources or the technology to undertake independent space projects or provide space-based services.
• Additionally, the demand for space-based applications and services is growing even within India.
• The need for satellite data, imageries and space technology now cuts across sectors.
• It ranges from weather to agriculture to transport to urban development, and more.
• But, ISRO is unable to cater to this.
• ISRO would have to be expanded 10 times the current level to meet all the demand that is arising.

What opportunity will IN-SPACe offer?

• Currently, all launches from India happen on ISRO rockets, the different versions of PSLV and GSLV.
• Several Indian companies were waiting to make use of the opportunities as IN-SPACe provides.
• A few companies were also in the process of developing their own launch vehicles.
• ISRO is now wiling to extend its support to them.
• ISRO would provide all its facilities to private players whose projects had been approved by IN-SPACe.
• Private companies, if they wanted, could even build their own launchpad within the Sriharikota launch station.
• ISRO would provide the necessary land for that.

What does ISRO gain by this?

• Commercial - There is a need for greater dissemination of space technologies, and better utilisation of space resources.
• Moreover, there is an increased requirement of space-based services.
• ISRO seems unable to satisfy this need on its own and thus private participation would fill the gap.
• Notably, the private players will not take away the revenues that ISRO gets through commercial launches.
• The space-based economy is expected to “explode” in the next few years, even in India.
• So, there would be more than enough for all.
• Also, ISRO can earn some money by making its facilities and data available to private players.
• Strategic - Right now, too much of ISRO’s resources is consumed by routine activities.
• This delays its more strategic objectives.
• There is no reason why ISRO alone should be launching weather or communication satellites.
• The world over, an increasing number of private players are taking over this activity for commercial benefits.
• ISRO, like NASA, is essentially a scientific organisation whose main objective is exploration of space and carrying out scientific missions.
• So, with private participation, ISRO can concentrate more on science, R&D, interplanetary exploration and strategic launches.

What are the other initiatives?

• IN-SPACe is the second space organisation created by the government in the last two years.
• In the 2019 Budget, the government had announced the setting up of a New Space India Limited (NSIL).
• The NSIL is a public sector company that would serve as a marketing arm of ISRO.
• Its main purpose is to market the technologies developed by ISRO and bring it more clients that need space-based services.
• This role was already being performed by Antrix Corporation, another PSU working under the Department of Space, and which still exists.
• It was unclear why there was a need for another organisation with overlapping function.
• However, the government said that it was redefining the role of NSIL.
• By doing so, NSIL would have a demand-driven approach rather than the current supply-driven strategy.
• So instead of just marketing what ISRO has to offer, NSIL would listen to the needs of the clients and ask ISRO to fulfil those.
• This change in NSIL’s role is also part of the reforms that have been initiated in the space sector.

Source: Indian Express