India’s Space Programme: A Role for the Private Sector, Finally? - The Wire, 22 May 2020

Last week, I wrote a short essay for The Wire regarding the recent announcement by India's Finance Minister Nirmala Sitharamn about the role of private sector in India's space programme.

India’s finance minister Nirmala Sitharaman announced last week that India’s private sector will play a key role in augmenting India’s space programme, and that the government intends to share the facilities of the Indian Space Research Organisation (ISRO) with the private sector. This announcement was part of the Narendra Modi government’s call for new and bold reforms in an effort to promote its ‘self-reliant India’ mission. It is the fourth segment of the Rs 20 lakh crore Aatma Nirbhar Bharat Abhiyan special economic stimulus.

For the full essay, click here.



Sitharaman’s announcement entails a role for the private sector, possibly with the goal of greater investments in technology development and acquisition, capacity-building and space exploration, including planetary exploration. The minister, while announcing these reforms, appeared to understand that the private sector can help augment India’s space capability. While praising the work done by ISRO, she also pointed out that the private sector is also doing a lot of work in developing space technology. She also acknowledged that the existing regulations prevent private entities from using or even testing their products.

Therefore, to level the playing field, the government “will make a provision for the private sector to benefit from the assets which are available to ISRO and for India (in general) to benefit from.” The minister also said the new reforms would allow the private sector to play an active role in “satellites, launches and space-based services”.

But as always, implementation is key. Properly executing these reforms will require enabling policies and appropriate regulatory frameworks.

That the new reforms will allow private sector players to use ISRO facilities is a big deal. This indeed must be music to the ears of commercial players who have been seeking to get a fair share of the pie in terms of manufacturing of satellites and propellant technologies, among other areas. It should not be too difficult for India’s private space sector because there is a sizeable talent pool available outside ISRO. More importantly, the entry of the private sector, as in the telecom sector, can bring several advantages in terms of cost and access.

Following the announcement, ISRO tweeted that it will follow the government’s guidelines to allow the private sector to undertake space activities in the country. Though this did not seem particularly welcoming of the government’s initiative, ISRO’s support is critical to making it a success.

ISRO has in the last few years been opening up to the Indian private space sector in a gradual manner – mostly as a matter of compulsion because ISRO simply does not have the in-house capacity to address India’s growing requirements. Today, the Indian space programme is not just about civilian applications for remote-sensing, meteorology and communication, as in the early decades. India’s space sector and its requirements have grown enormously in the last decade to include television and broadband services, space science and exploration, space-based navigation and, of course, defence and security applications.

Among others, Ambassador Rakesh Sood has articulated the need for legislation to facilitate ISRO’s partnership with industries and entrepreneurs. Narayan Prasad and Prateep Basu, two prominent faces in the Indian space start-up segment, have argued that despite ISRO’s successes, “India’s space competitiveness has suffered from the absence of a globally reputed, private space industry.”

The private sector, especially the NewSpace industry and start-ups, have an advantage in terms of low-cost operations, which itself should be a big incentive for the government to make it an active stakeholder. A certain amount of democratisation of space technology with the participation of the private sector can ensure costs are kept low. And expanding the number of stakeholders will also ensure more transparency and better accountability and regulatory practices. This has been missing in India’s space sector. The same agency has undertaken promotion, commercialisation and regulatory functions – which is not healthy.

Following the minister’s announcement, I spoke to a few key players in the private sector to capture their sense of the reforms in the pipeline. Sadly, the general mood is not one of excitement but rather to wait and watch. To them, as stated earlier, the key is implementation. One of them, who did not wish to be named, argued that unless there is a conducive structure for the private sector to engage with, the announcement is more lip service. Narayan Prasad said that there need to be basic changes for the reforms to be effective. The private sector is particularly concerned about issues such as sharing intellectual property for products developed by the private sector. Prasad argued that IP-centric policymaking has to be taken for real reform.

Right now, ISRO thinks they will use the suppliers only as manufacturing or services partners. So all IP is controlled by ISRO and suppliers just replace ISRO technicians and production facilities. This means most suppliers have no real IP of their own, and just depend on cost plus contracts from ISRO for business. The only way to change that is to create reforms where local industry can invest in building their own IP and/or products that can match global standards.

This in turn means that policymakers will need to view industry as more than sweatshops and look at what steps can be taken for IP/product development by private industry. This is the only way to integrate India’s private sector into the global supply chain. Prasad adds that if ISRO is serious about partnering with the private sector, it must spell out the requirements and select the best available. Several private-sector actors have articulated the need for an independent regulator.

This is an area that has been a common thread in many of my conversations with Indian entrepreneurs. Rohan M. Ganapathy, CEO and CTO of Bellatrix Aerospace in Bengaluru, also made a strong case for an autonomous regulator, and acknowledged a need for the government to clarify R&D risk funding, which is crucial to realise new technologies.

It is not that ISRO has not engaged the private sector. ISRO has long been associated with private firms like Larsen & Toubro, Godrej and Walchand Nagar Industries. It is just that the mode of participation envisaged through the new reforms is very different. The current mode of work, more of an outsourcing model, is becoming inadequate. In the last few years, because of significant capacity deficit, ISRO began to work with a few in the private sector such as the Bengaluru-based Alpha Design Technologies, contracted to build satellites. Similarly, Bellatrix Aerospace began to work with ISRO on advanced in-space propulsion systems. But these remain exceptions.

But ISRO does recognise the new compulsions and has been trying to change. The newly formed commercial enterprise called the NewSpace India Limited (NSIL), under the Department of Space, is an initiative to engage the private sector. NSIL is meant to help the private sector with transfer of some technologies to the private sector, especially the small satellite launch vehicle that is being developed and even the older PSLV. But the pace of ISRO’s engagement with the private sector needs to quicken.

Followed up effectively, the new government initiatives could help. Indeed, ISRO needs to expand its operations significantly if it has to remain competitive, both from a domestic and international outlook. The Indian space programme has several advantages, the most important being cost: the ability to provide reliable launches in a cost-effective manner is a big advantage. The Polar Satellite Launch Vehicle remains a tried and tested launch vehicle and has managed to remain the cheapest for launching small satellites into space. But competition in this sector is picking up.

Jeff Bezos’ Blue Origin, Elon Musk’s SpaceX and start-ups from China want a share of the global commercial market, estimated to be worth around $350 billion (Rs 26.46 lakh crore). If ISRO does not improve its launch infrastructure and increase the number of launches, it will be at a disadvantage. And despite India’s cost advantages, it has a mere 2% share of this, worth $7 billion. India can gain significantly if ISRO and the country’s private space sector can cooperate effectively and synergistically. This requires the government to actually act on the initiatives it announced.

The ISRO isn’t enough. India needs its own Elon Musk or Jeff Bezos - The Quartz, 19 July 2019

In a first, I write for The Quartz on the Indian space programme and its future plans. India's civil space organisation, the Indian Space Research Organisation (ISRO) has come a long way in the last five decades and is one of the public sector institutions working well but to stay competitive into the future, ISRO has to become innovative and find ways to bring on board India's private sector.

After five decades, India’s space program has evolved considerably, and has finally earned its right to be considered an established space player. But the future looks complicated.

For the full essay, click here.



The Indian Space Research Organisation (ISRO)—India’s NASA, if we must—was established a few decades after the country gained independence. At the time, the government had to justify spending precious resources on a space program when millions of its people were mired in poverty. For this reason, India’s space program has focused on developmental missions right from the beginning; mainly establishing communication satellites, weather forecasting, and remote sensing technology. It has since become one of the most cost-effective space industries in the world.

India’s Mars Orbiter Mission, or Mangalyaan (“Mars craft” in Hindi), cost around $73 million—less than what it cost to make Hollywood space films like Gravity and The Martian, as some like to point out. The recently rescheduled Chandrayaan-2 mission to land an Indian lunar module on the moon was similarly cost efficient.

Of course, we have to acknowledge that India’s space missions have been far less ambitious and complicated, and have carried much smaller payloads compared to those of global space giants like NASA.

Growing private sector pains
The program now faces a serious capacity crunch in meeting its mission requirements, which has compelled the ISRO to begin reaching out to the private sector, specifically to engage small Indian commercial space enterprises. The Bangalore-based Alpha Design Technologies Private Limited was commissioned to manufacture a series of satellites. Bellatrix Aerospace Private Limited has been contracted to work on advanced in-space propulsion systems.

But collaborating with the private sector has not been an easy move for the government-funded (and managed) ISRO.

Take, for example, when the program decided to privatize one of its smaller rockets, the Polar Satellite Launch Vehicle, or PSLV, about a decade back. The PSLV is a tried and tested rocket. Passing it on to the private sector should have permitted the ISRO to focus on other more vital areas such as developing new, larger rockets, or focusing on human space flight and space exploration.

But bureaucratic resistance to helping India’s private space enterprises, even from within the ISRO, means the organization still has not succeeded in transferring the PSLV to the private sector.

This is not to suggest that the ISRO is entirely against private sector participation in the country’s space sector. Earlier this year the Indian Cabinet approved a new commercial enterprise called NewSpace India Limited, or NSIL, under India’s Department of Space.


It has been yet another effort to build ISRO’s relationship with the private sector and to expand the commercialization of the Indian space program as a whole. The NSIL is supposed to help with technology transfer from the ISRO to private players, including India’s small satellite launch vehicle program and the older PSLV.

The NSIL is also meant to help promote space-based products and other spin-off technologies.

The cost factor, as it turns out, remains an exceptional aspect of India’s space program.
It’s difficult to predict where this new private-sector experiment will take the ISRO, but if we look back to one previous attempt with a similar initiative, the Antrix corporation, we should be somewhat concerned. The Antrix Corporation was set up in 1992 and became the first commercial initiative within the ISRO. Its primary objective was to facilitate ISRO’s commercial launch of foreign satellites, but it’s yielded underwhelming results.

Is cost-effectiveness enough?
The cost factor, as it turns out, remains an exceptional aspect of India’s space program. ISRO’s PSLV remains the workhorse of the agency, and it still offers one of the cheapest and most reliable ways to launch small satellites into space.

There are plenty of other private and state players in the small satellite launch market, such as Jeff Bezos’ Blue Origin, Elon Musk’s SpaceX, and others, including competitive start-ups in China. But the PSLV has been remarkably durable, consistent, and is still one of the most attractive options from an industry standpoint.

The launch list
The ISRO has a long way to go if it wants to fully exploit its advantages. For one, it has to be much more proactive in seeking deals with foreign markets. If India used space as an effective tool for diplomacy, it would bring in some much-needed revenue to the Department of Space, and it would also help expand India’s strategic reach into other countries.

India has to increase its number of missions per year if the ISRO wants to remain competitive.

The country has taken on the impressive challenge of doubling its average to 12 missions per year in a five-year period, but the true challenge is sustaining this rate into the foreseeable future.

This is a crucial step if India plans to capture a sizeable chunk of the global commercial space market, especially with keen competitors like China, which has committed to launching 30 satellite in 2019.

Other urgent action points for the ISRO include increasing its launch infrastructure starting with the number of launch pads. The same goes for its satellite manufacturing capabilities.

Not only is partnering with emerging private space enterprises a viable and ready solution to the ISRO’s capacity problems, but it will not diminish ISRO’s importance—look at the US’s successful and heavily privatized national space sector as an example.

Getting the private sector to shoulder some of the burden will not diminish the importance in India’s space story. If anything, it will bolster India’s economic reputation.

By passing on routine commercial launch activities to the private sector, the ISRO could position itself to focus on even bigger missions. It can turn its attention to major plans like Gaganyaan, India’s mission to human space mission planned for 2022, set to coincide with India’s 75th year of independence.

We find ourselves at an interesting and complex juncture with India’s national space program. The ISRO’s profile has grown in recent years, with major initiatives like the Mars mission ranking India in with the top five global players in outer space.

But India’s ability to stay competitive at a time when there are a growing number of space actors—including commercial ones—depends on the country’s willingness to embrace its own private sector to stay on a level playing field.

India’s Space Program: The Commercial Domain - The Diplomat, May 10, 2019

In this week's column for The Diplomat, I write on the Indian space programme, focusing on the commercial aspects of it. The establishment of a new private institution has spotlighted New Delhi's ongoing efforts to build out the commercial aspect of its space programme.

In the beginning of March this year, the Indian Cabinet cleared the establishment of a private institution, the Newspace India Limited (NSIL), under the Department of Space. While the development may not have received as much international attention as some of the other space- and defense-focused developments in India, it bears careful watching as it is in line with New Delhi’s ongoing efforts to build out the commercial aspect of its space program.

India’s focus on the commercial aspect of its space program in general and moves such as the establishment of NSIL are not entirely new or surprising. This follows from the Narendra Modi government’s plan to make space a major industry focus under the government’s Vision 2030 announced in this year’s interim budget. The 10-point agenda in Vision 2030 included making India “the launchpad of the world and placing an Indian astronaut in space by 2022.”

For the full essay, click here.



With respect to NSIL itself, the new entity has been set up with a paid-up capital of around $1 million. NSIL will function under the directorship of Radhakrishnan Durairaj and Suma Devaki Ram, who have been Indian Space Research Association (ISRO) directors of launch services and operations respectively. They also serve on the management team of Antrix.

The new institution is the second commercial arm of the ISRO after the Antrix Corporation, which was set up in 1992 primarily to facilitate ISRO’s commercial launch of foreign satellites. The major goal for the NSIL will be to facilitate the transfer of ISRO technologies to private industries as well as aid in marketing space-based products and spin-off technologies.

Reports citing official documents suggest that in order to facilitate transfer of technology, NSIL will take license from ISRO before sub-licensing them to the commercial players. The technology transfer envisaged through the NSIL will include India’s small satellite program, the small satellite launch vehicle (SSLV) program and the Polar Satellite Launch Vehicle (PSLV). This would mean that services including launching of satellites can be undertaken by private entities once the license is procured by the NSIL.

Speaking to Times of India, Dr. Sivan, head of the ISRO, said that the NSIL will essentially become the connecting link for ISRO with commercial players to aid in technology transfer for a fee. As he put it: “We wanted a mechanism to transfer the technologies of our new projects like SSLV and even lithium-ion cells. With this company, ISRO will be able to smoothly transfer these technologies after charging fees. Once companies start mass production of small satellites and launchers, ISRO will be charging them for using its launch services.” In another interview, he had stated that he expected a demand for 2-3 SSLV rockets per month.

A January 2019 notice on the ISRO website had already shortlisted ten domestic industries for the technology transfer with regard to lithium-ion cell technology. The ISRO had already decided to transfer the PSLV rocket to the private sector more than a decade ago, though this has not yet been accomplished. The NSIL can possibly help do this quicker. On the regulatory aspects, the ISRO Chairman added that a separate “space law” is being readied, which will soon be with the Indian cabinet for its approval. It will manage all aspects of the regulation of space ventures and will “also have provisions related to the accountability of manufacturers for its space components.”

The ISRO has a proven track record in launching small satellites with the success of the PSLV. The development of the SSLV will give India a further boost in this segment. SSLV will offer an even more cost-effective option than the existing PSLV. The Chairman and Managing Director of Antrix, Rakesh Sasibhushan has said that with the SSLV, they expect to hit “a much lower cost than the PSLV” and that they were “also looking at a large increase in our revenues.” Besides the cost factor, the SSLV can also be assembled in 3-4 days as against the 40 days for a normal size rocket (Other reports suggest 15 days to assemble the SSLV).

The first test flight of SSLV is scheduled for July-August this year. ISRO has plans to launch two defense satellites of 120 kg each during the first test slight itself. The SSLVs will carry payloads between 300-500 kgs to Low Earth Orbit, thus eyeing a specific market that has not been tapped into much as yet.

ISRO’s approach to privatization and commercial engagements has come a long way, driven by the need to stay competitive at a time when there are fast emerging competitors including China and foreign commercial players who have been eyeing the global commercial space. The competition is likely to be stiff, especially in the small satellite segment given the global trend to break the big satellite constellation into smaller ones. Small satellites offer many advantages, the cost to manufacture and launch being a major consideration. ISRO’s opening to bring commercial entities into India’s space trajectory is likely to have several spin-off benefits, including for national security purposes.