Union Cabinet approves reforms to allow private sector participation in Space activities

The Union Cabinet on Wednesday approved ambitious reforms in the Space sector aimed at boosting private sector participation in the entire range of space activities, as announced by Finance Minister Nirmala Sitharaman in May.

"Space sector can play a major catalytic role in the technological advancement and expansion of our Industrial base. The proposed reforms will enhance the socio-economic use of space assets and activities, including through improved access to space assets, data and facilities," a statement from the Prime Minister's Office said.

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IN-SPACe

Union Minister of State for Atomic Energy and Space, Jitendra Singh, also announced the formation of a new institution – Indian National Space, Promotion and Authorisation Centre or IN-SPACe. He said the Centre will guide the private industries in space activities through encouraging policies in a friendly regulatory environment. He maintained that the body's role has been extended into the Indian Space Research Organisation (ISRO).

"Indian National Space, Promotion, and Authorisation Centre will guide the private industries in space activities through encouraging policies in a friendly regulatory environment. The Centre is not a new institution but its role has been extended into ISRO. They will supplement each other's work they will not work at cross purposes," Singh told reporters in a press briefing on Wednesday.

According to a government statement, IN-SPACe will provide a level playing field for private companies to use Indian space infrastructure. It will also hand-hold, promote and guide the private industries in space activities through encouraging policies and a friendly regulatory environment.

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Optimum utilization of space asset

The Public Sector Enterprise ‘New Space India Limited (NSIL)’ will endeavour to re-orient space activities from a ‘supply-driven’ model to a ‘demand-driven’ model, thereby ensuring optimum utilization of our space assets, the government further said.

These reforms will allow ISRO to focus more on research and development activities, new technologies, exploration missions and human spaceflight programme. Some of the planetary exploration missions will also be opened up to the private sector through an ‘announcement of opportunity’ mechanism.

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Space sector open for private players

In a game-changing move to boost private participation in space exploration and research, Nirmala Sitharaman had announced that future projects for planetary exploration, outer space travel, etc will be open for private players. Private companies will be allowed to use ISRO facilities and other relevant assets to improve their capacities.

The Finance Minister had said the Centre will provide a predictable policy and regulatory environment to private players. Liberal geo-spatial data policy would be introduced for providing remote-sensing data to tech entrepreneurs. The measures are expected to further India's leap in the space sector.

The announcement was made while unveiling the fourth tranche of a massive stimulus package pledged by the Modi government to rescue the Indian economy from the devastating fallout of the Coronavirus pandemic in May.

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