India faces $1 billion in damages for space contract cancellation

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An arbitration court at the Hague yesterday ruled that India faces $1 billion in damages because of its unilateral cancellation in 2011 of a satellite deal between itself and a private company.

More info here. Essentially the ruling says that India had made a legal commitment when it signed the contract, and by unilaterally cancelled it they did harm to the private company’s shareholders.

This case illustrates that, despite India’s successes in space, it is still running a government space program, with all the flaws that come with it. Paying off these damages will likely put a serious crimp in the country’s space effort in the next few years.

One comment

  • Laurie

    One might argue they bought cheap and lost out.

    “59% of the total population lives on less than US$2 per day” ( and the government is supposed to hand over $1 billion?

    Those who did not stand to gain from the deal shouldn’t be on the hook for it falling through.

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