Private Sector Investment in Space Industry

In Context

• Recently, the government is seen making efforts to increase private sector participation in the space industry.

More about the news

• The Indian government would soon come up with a new space policy that could initiate the rise of India’s own “SpaceX-like ventures”.
  • SpaceX is Elon Musk’s private space transportation company.

Significance of the Space industry

•  Assessing & recording weather information:
  • Satellites provide more accurate information on weather forecasts. 
  • It can also assess (and record) long-term trends in the climate and habitability of a region. 
    • For example, by monitoring the long-term impact of climate change at regional, territorial, and national scales, governments would be able to devise more pragmatic and combative plans of action for farmers and dependent industries. 
• Real-time tracking :
  • Satellites can serve as real-time monitoring and early-warning solutions against natural disasters such as earthquakes, tsunamis, floods, wildfires, mining etc. 
  • Real-time tracking can also serve multiple purposes in defence.
• Communication and connectivity:
  • As for connectivity, satellite communication can reach more remote areas where conventional networks would require heavy complimenting infrastructure. 
  • Additionally, as to the reliability, the World Economic Forum(WEF) stated that satellite communication can help connect 49% of the world’s unconnected population. 
  • In this light, it must be noted that satellite communications, which are used to facilitate telecommunication services, are among the major categories for investment in the space technology sector. 
  • Other prominent categories include spacecraft and equipment manufacturing.
• Benefits to other sectors:
  • The space avenue is an integration of the aerospace, IT hardware and telecom sectors. 
  • It is thus argued that investment in this arena would foster positive carryover effects to other sectors as well.

Regulation of the Private sector in the Space industry in India

•  National Space Promotion and Authorisation Centre (IN-SPACe):
  • About:
    • It is an autonomous and single window nodal agency in the Department of Space for the promotion, encouragement and regulation of space activities of both government and private entities. 
  • Mandate and responsibilities:
    • It is mandated the task of promoting, authorising and licensing private players to carry out space activities. 
    • It is responsible for devising mechanisms to offer sharing of technology, expertise facilities free of cost (if feasible) to promote non-government private entities (NGPEs). 
  • IN-SPACe’s Monitoring and Promotion Directorate:
    • It oversees NGPE’s activities as per prescribed regulations and reports back in case any corrective actions or resolutions are required.
  • ISRO facilities:
    • ISRO shares its expertise in matters pertaining to quality and reliability protocols, documentation and testing procedure through IN-SPACe’s ‘interface mechanism’.
    • It also facilitates the usage of ISRO facilities by private entities.
• NewSpace India Ltd (NSIL):
  • It is mandated to transfer the matured technologies developed by the ISRO to Indian industries. 
  • All of them are under the purview of the Ministry of Defence.

Challenges

• Monopolisation:
  • Space technology is expensive and needs heavy investment. 
  • This kind of lucrative power is available only with selected rich corporates, thus can lead to monopolisation of the sector. 
• Favouring the private sector:
  • Also, IN-SPACe’s role has been defined as a government regulator, ‘to provide a level-playing field’ for everyone. 
  • However, in the past, this has resulted in the governments favouring the private sector over the public sector or leaning towards specific private brands. 
• Backseat for social development:
  • ISRO, since its inception, has always aimed to work on projects that can help India become self-reliant. 
  • The space program always worked on applications like remote sensing, tracking of land use, resource mapping, among others. 
  • However, private companies will have more profitable interests than developing solutions that cater to the immediate socio-economic needs of the country. 

Way ahead

• Private sector’s involvement in the long term, as with other commercial sectors, is believed to help spur investment and expertise in the realm which is capital-intensive and demands high technology.
• Since private space activities will significantly increase if the policy is accepted, India needs to develop a robust legislative framework for space to ensure sustainable and inclusive growth.

Source: TH