Will India’s private space industry take off?
Link here. The article describes the presentations given during an event in India that included both government and commercial representatives of its space industry.
It appears that one of the concerns of India’s private space sector is the recent creation of a new division in ISRO, the country’s space agency, focused on making ISRO’s technology available to the private sector, for a fee. From the second link:
Reports citing official documents suggest that in order to facilitate transfer of technology, NSIL [Newspace India Limited] 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.
It appears the speakers at the conference had mixed opinions about NSIL. Some saw it as a direct competitor, holding significant advantages because already has guaranteed government funding. Others were more optimistic.
What strikes me is the decision by ISRO to have NSIL charge private companies for its technology. This is a very bad idea, for a number of reasons. First, it makes NSIL a power-broker over the private sector, able to pick its own favorites in that industry. Second, such schemes in government always lead to corruption and bribery. Third, the fees will act to squelch new companies unable to afford them.
The U.S. approach has always been that any technology developed by its government agencies is public knowledge, paid for by the taxpayer, and thus instantly available for use by any private operation at no charge. While this policy has its own pluses and minuses, in general it works far better at encouraging development and growth in the private sector, while limiting the power of government entities.
The structure of India’s new government entity, combined with the oppressive language proposed in 2017 for India’s space law, does not bode well for the growth of an independent and competitive commercial Indian aerospace industry. In fact, both suggest that India’s government-controlled space program is beginning to travel the typical road that all government programs all eventually travel: First they are innovative and successful. Then they grow in size and power. Finally they use that power to squelch any private competition to protect their turf.
It looks like ISRO is beginning to enter that third stage.
Link here. The article describes the presentations given during an event in India that included both government and commercial representatives of its space industry.
It appears that one of the concerns of India’s private space sector is the recent creation of a new division in ISRO, the country’s space agency, focused on making ISRO’s technology available to the private sector, for a fee. From the second link:
Reports citing official documents suggest that in order to facilitate transfer of technology, NSIL [Newspace India Limited] 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.
It appears the speakers at the conference had mixed opinions about NSIL. Some saw it as a direct competitor, holding significant advantages because already has guaranteed government funding. Others were more optimistic.
What strikes me is the decision by ISRO to have NSIL charge private companies for its technology. This is a very bad idea, for a number of reasons. First, it makes NSIL a power-broker over the private sector, able to pick its own favorites in that industry. Second, such schemes in government always lead to corruption and bribery. Third, the fees will act to squelch new companies unable to afford them.
The U.S. approach has always been that any technology developed by its government agencies is public knowledge, paid for by the taxpayer, and thus instantly available for use by any private operation at no charge. While this policy has its own pluses and minuses, in general it works far better at encouraging development and growth in the private sector, while limiting the power of government entities.
The structure of India’s new government entity, combined with the oppressive language proposed in 2017 for India’s space law, does not bode well for the growth of an independent and competitive commercial Indian aerospace industry. In fact, both suggest that India’s government-controlled space program is beginning to travel the typical road that all government programs all eventually travel: First they are innovative and successful. Then they grow in size and power. Finally they use that power to squelch any private competition to protect their turf.
It looks like ISRO is beginning to enter that third stage.
