Tag Archives: Devas

India faces $1 billion in damages for space contract cancellation

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.