Clear Space Activity Bill to further reinforce Space Policy, says apex industry body head

The Indian Space Association (ISpA), the country’s leading forum for private-sector companies in the spacetech sector was formed in 2021. In a candid interview with Business Today’s Manish Pant, director general of the association, Lt Gen. (Retd), Anil Kumar Bhatt, touched upon notable issues such as the impact of the recently announced Indian Space Policy, the need for more firms to enter the downstream segment, development of dual-use technologies and the funding scenario. Bhatt especially highlighted the importance of finalising the long-pending Space Activity Bill into law to give legal credence to the country’s space policy internationally.

With the fine print of the Indian Space Policy out, how do you see it as positively impacting the sector?

The release of the Indian Space Policy, 2023, fine print gives clarity to both the industry and potential investors in terms of what to expect. It also defines the role of agencies such as the Indian Space Research Organisation (ISRO), Indian National Space Promotion and Authorisation Centre (IN-SPACe) and non-governmental entities (NGEs) [private sector firms]. Along with all of that, we are hoping that foreign direct investment (FDI) will also start coming in soon. Therefore, we are quite happy with the policy as it will help streamline a lot of things. And, as has been promised to us, the Space Activity Bill also needs to be approved at the earliest. Being a spacefaring nation we need to look at things from a larger perspective and that should be the government’s next step. It’s a bill that will provide us with legal credence internationally. Policies are fine for running day-to-day operations, but for any major activity such as nuclear energy or space, such a bill is essential.

What have been some of the most significant milestones achieved by the spacetech sector in FY22-23?

If we look back at the year gone by, there have been a number of positives. Take our startups for instance. Skyroot Aerospace has been able to do its first suborbital launch. Pixxel, Dhruva Space and Bellatrix Aerospace have been able to test their equipment in space. While Dhruva Space has been able to successfully launch its two Thybolt satellites, Pixxel has been able to send its third satellite into space. In yet another positive development, Pixxel has also got a contract from the National Reconnaissance Office (NRO) of the US. Moving forward, Ahmedabad-based Azista Aerospace will be able to launch its first satellite by June, while AgniKul Cosmos is waiting to launch its first 3D-printed rocket. This will further boost the Indian spacetech ecosystem as 3D-printed cryogenic engines have not succeeded elsewhere in the world. Even among the big companies, ISRO has successfully executed the contract to launch OneWeb’s 72 satellites in space. OneWeb is currently providing services in the northern hemisphere and following the release of the Space Policy they are likely to start offering their services here as well. Similarly, the award of the contract for the manufacturing of the Polar Satellite Launch Vehicle (PSLV) to Hindustan Aeronautics Ltd (HAL) and L&T is indicative of the government’s confidence in the private sector. The next stage should be the management of PSLV by the private sector. Even the Small Satellite Launch Vehicle (SSLV), will be given to the private sector for utilisation.

Having been among the first to point out the importance of applications in attracting investments and revenues are you satisfied with the initiatives underway in the domain?

Encouraging development of applications is a thrust area for the association. One of our ongoing discussions is about aggregating the demand of the defence and private sectors, especially in downstream applications like remote sensing or satellite communications. We are confident that more and more use cases will be created as these capabilities emerge in India. We, therefore, need many more companies like SatSure Analytics India and Tathya Earth that are already working in the domain of data analytics. One of the leading players in the field of space situational awareness (SSA), VEDCOMSPOC, has a backend office in India. Their 100-strong staff provides SSA services to the world. Till a few years ago, it was believed the world over that SSA was entirely the government’s responsibility. During our recent interactions with people from the European Space Agency (ESA), we learned that up to 70 per cent of their budget went to private companies for SSA management.

You have also been very emphatic on the creation of dual-use technologies having both defence and civilian applications. Why is that important?

It is important for India because if critical applications based on remote sensing have their shutter control in some other nation, then maybe in situations such as war access to them can be either restricted or outrightly disallowed. Therefore, the capability has to be from an indigenous source or a source operating from Indian soil.

Are you satisfied with the funding scenario?

Money has been coming in with venture capital funds investing in spacetech startups. But there needs to be more support from the government. A number of incentives such as export exemptions, Production Linked Incentive (PLI) schemes and GST reductions need to be extended to us so that we may be able to compete globally.