The IN-SPACe (Indian National Space Promotion and Authorization Center) headquarters in Ahmedabad were inaugurated on June 10, 2022, and a closed-door meeting held between IN-SPACe and several entrepreneurs on June 11, 2022.
On this occasion, in an exclusive interview, Pawan Kumar Goenka, Chairperson, Indian National Space Promotion and Authorization Board, IN–SPACe, spoke with Arup Dasgupta, Managing Editor, Geospatial World, about the new venture and how it will enable a level-playing field for private companies and start-ups in the Space sector.
Dasgupta: What are the takeaways of the June 11 meeting as far as IN-SPACe is concerned?
Goenka: This was a meeting with almost 100+ people from the industry — both vendors as well as new Space technology companies. Everyone was very excited with the previous day’s event, because it was very clear that at the Prime Minister’s level, there is a tremendous desire for industry to come into the Space sector in a much bigger way than before.
The PM clearly mentioned that he did not want to see the industry only as vendors, but as leaders in space development. Although this had been talked about before, it was the first time clearly enunciated by the Prime Minister that he is looking for space activities to go far with the backbone of industry participation.
Space Policy 2022
The industry is very keen to see when the policy will come out because it has been in the making for quite some time. We have had several consultations with the industry on the policy itself so there are not too many concerns — barring one or two new questions — on what is in the policy, because everybody is comfortable with that.
Most of the heavy lifting has been done, such as approvals from various concerned departments. Now the final compilation of all suggestions and comments is going on. So it shouldn’t be too long before the policy is announced.
Role of IN-SPACe
I think the industry just wants to ensure that the intent that was expressed by the PM becomes a reality. There is some level of apprehension. This is where IN-SPACe will play a major role — it will bring in the confidence that the Government is very serious about the private sector entering this domain.
The Government is very open to sharing its infrastructure and technology with the industry. Next, the regulatory environment that we are putting in place through the policy and its implementation by IN-SPACe is something that is conducive to private sector participation. This sector is clearly looking for a level playing field and ensuring that what happens is the intent of IN-SPACe.
Implementation issues
Industry will be convinced once they see the policy implemented on the ground. We have to convince the industry through our actions that we mean business.
We are very serious about the private sector coming into Space and playing a lead role, along with ISRO. But, at the same time, nobody should think that the private sector can move forward without ISRO. As the PM mentioned, it is very important that nobody should feel that ISRO is now sidelined and the private sector can move forward alone. ISRO is still at the core of whatever happens in Space.
Support from ISRO and investment by the Government
Dasgupta: Pierre Lionnet, of ASD-Eurospace, made exactly the same point. He said that most Space industries worldwide are highly dependent on government funding, and he gave the example of SpaceX where NASA has put in a huge amount of money. So, does the Indian industry understand that it is the Government that will really be providing the backing, both financially and technologically?
Goenka: What the industry will clearly be getting is the benefit of and access to the technology that has been developed by ISRO over 50-60 years. In terms of direct funds and support, we have not so far made any formal policy. We are going to keep looking at it as things develop. Right now, we are not even at a point where the industry can ask for a Production Linked Incentive (PLI) scheme.
We are not quite ready to talk about this scheme. PLI comes in when we have a manufacturing industry in the country, which is not cost-competitive globally. Right now, we don’t even have an industry, so PLI is not going to solve any problem.
What we have to first see is that there is a natural attraction for a manufacturing industry in Space to be set up. How many companies are planning to make satellites for global applications? Hardly one or two, and nobody is saying that they are not able to do it because the cost is too high.
The only purpose of PLI schemes is for the Government to share some of the cost burden. India has an inherent advantage of lower manufacturing costs compared to the US or Europe.
Private investment
What we are looking for right now is to see how the private sector can become interested in participating in Space? How do investors come in? Private sector start-ups are not going to bring in their money. They are bringing in their sweat equity, so to say. They are bringing their knowledge, their aspirations, and their ability to risk all of that, but we still have to have investors who will invest money — like private equity firms and venture capitalist firms. These have not yet warmed up to investing in Space in India.
They need to see success stories. We have to sign 10 MOUs with industry for projects and all of these projects will get executed and completed in the next eight to ten months. It is very important for us and the companies to demonstrate to investors through these projects that this will then bring in returns on any investments that they make.
Dasgupta: Many of these investors may want an independent assessment of the industry that is asking for funds. Can IN-SPACe play that role?
Goenka: It will not be right for IN-SPACe to do it. Yes, we can, but it won’t be right because if we are the ones hand-holding the industry, we are the ones who are authorizing the activity of the industry. If we then start telling investors that go and invest in A or B or C, that will create a conflict of interest.
Government as an investor
Dasgupta: Why can’t the Government also think in terms of being an investor?
Goenka: It is possible and it might happen in the future because the Government does have start-up funds — we can’t rule it out. Creating a fund for Space investment, which will come from the Government of India Fund, is something that we can look at in the future.
Right now, if some industry comes to us and says, ‘Look, I’m not able to do something because I don’t have funds’ or ‘I’m not able to compete in the global market because my costs are too high’, then we can think about funding, and about PLI. Right now, that’s not the request; right now it is “I have a technology, which I need to demonstrate, so help me demonstrate it.”
Immediate tasks
Dasgupta: So you are only at the demonstration stage and not looking to scale up further right now?
Goenka: Yes. Right now, the entire focus is on putting a system in place for how ISRO gets involved in terms of the use of facilities by the private sector, how ISRO gets involved in hand-holding, how IN-SPACe develops its own expertise to be able to help the industry, and what kind of authorizing process do we put in place.
Don’t forget that IN-SPACe is also a regulator. All this is happening right now and I think this is where the focus will be in the next 12 months. After that we’ll worry about funding and will prepare the ground for it.
Role of ISRO, NSIL and INSPACe
Dasgupta: People are very confused about the three entities involved — IN-SPACe, NewSpace India Ltd (NSIL) and Department of Space.
Goenka: IN-SPACe is an autonomous body under the Department of Space. NSIL is a commercial arm of DoS, and ISRO is the technology developer and owner of all the infrastructure. The role of IN-SPACe is to provide all the facilities, technology, and authorization to industry, through ISRO. The industry does not have to go to ISRO, it comes to IN-SPACe who will liaise with ISRO.
When NSIL was formed (in 2019), it was only about what ISRO will do and what NSIL will do. Now it is what ISRO will do, what NSIL will do, and what IN-SPACe will do.
IN-SPACe was announced two years ago, but its actual operations started only in April so, in that sense, we are only about two months old. We are still evolving. We need to make sure that we do the right thing from the viewpoint of the Government and from the viewpoint of the industry. Internally, we have good understanding and clarity about this.
NSIL is the commercial arm of DoS. So, if company X is launching a satellite, authorization is done by IN-SPACe but the actual launch is handled by NSIL if the company is using an ISRO facility.
NSIL will execute a commercial agreement with the company to manage that launch. If, on the other hand, the industry wants to do something on its own, NSIL doesn’t come into the picture at all.
Technology transfer, for example, will happen through NSIL. But IN-SPACe’s role is to facilitate the transfer of technology ISRO is providing and NSIL is transferring. In our mind we are 95% clear, not 100%, but people’s minds outside of here are probably 70 to 75% clear.
Goenka: That’s outside my sphere so I don’t think I should comment on it. I’m not even fully aware of it because this is between ISRO and NSIL. IN-SPACe has no involvement in that.
Satellite data policy
Dasgupta: Indian satellite data is very useful for the purpose of application. This data is expensive. I find that most industry people don’t use this data. There is a data and information portal called Bhuvan, which is not used. In fact, they mainly use freely available data like Landsat and Sentinel.
Goenka: Policy will fix that. We are defining three layers. In one layer, data is available for free, and then below that layer data is available freely but for a cost, and the third layer is available only if approved by the concerned authorities.
Dasgupta: I had a look at the policy and it says greater than or equal to 0.5 meters is free.
Goenka: No, it is 0.3 meters. This was the input that came to us from the industry interaction, and we made it 0.3 meters.
Dasgupta: There are foreign data suppliers like Maxar and Planet. NRSC is a canalization institution and whenever a company wanted to buy any data from foreign data suppliers it had to put in a request to NRSC. NRSC in turn would do the procurement and then pass it on to the company. How do these companies operate under the new policy?
Goenka: I’m not very familiar with this. I will take this question of yours and see if the current process can continue or we need to simplify the process? Because I think what you’re asking is why do they need to go through NRSC? I will make a note and see if anything needs to be changed.
Dasgupta: Have some of the issues in the Geospatial Guidelines, which were issued in February 2021, been taken care of in the Space Policy?
Goenka: The Space Policy is fully compliant with whatever is in the Geospatial Policy. The thing that one has to understand is that the data you collect from Space is wide ranging and you need to be careful that in the process of freeing up you don’t compromise on the security aspects. One could say that it is impossible to stop anybody from collecting data because anybody can collect the data they want. Yes, we cannot stop them but we can stop dissemination of the data where we think it’ll come in the way of security.
Do our neighbors have all the data on sensitive things in India? They probably do. Does India have data on things that are sensitive for other people? Probably yes.
I don’t think anybody should be naive enough to think that people don’t. But are we allowed to freely use the data? That’s where we have to be a little careful. All I can say right now is that since the Geospatial Guidelines have preceded the Space Policy, the Space Policy has to fully align with that. If they have raised the bar higher, then we cannot be lower. Of that we have made sure.
Space Policy, Space Act and Decadal Plan
Dasgupta: I have heard three terms being used. One is Space Policy, and the others are Space Act and a Decadal Plan.
Goenka: Decadal Plan is basically strategy that ISRO and IN-SPACe are working on. We are a seven billion economy today. In 10 years, where should we be? If we just say let’s become bigger, that’s not a target. To say, let’s become a 70 billion dollar economy without thinking as to how, is also just kite flying. So a Decadal Plan will say where we want to be 10 years from now. And how we get there.
What are the areas that we will work on? What are the low hanging fruits? What are the early harvests? That’s the strategy that we are working on at IN-SPACe and ISRO together; this has nothing to do with the Government of India, per se.
Space Policy is something you are familiar with. That’s the one that will get released quickly, and that’s what will guide the Act of IN-SPACe in terms of how we authorize, what we authorize, what we can do, what we cannot do, and so on. The Space Policy is not something that is approved by the Parliament, it’s approved by the Cabinet.
The Space Act will be approved by the Parliament and this will make IN-SPACe a Parliamentary approved body, which it currently is not. This distinction even I didn’t know of till I came into this role. The Act will address a few things beyond the Policy, because those have to be approved by the Parliament, not the Cabinet. Telecom Regulatory Authority of India, for example, is one such body.
Dasgupta: If there is a Space Act, will there also be a Geospatial Act? There is a lot of overlap between the two.
Goenka: I don’t know because that is handled by a different ministry. Therefore, coordination is definitely required between the two. There is nothing equivalent of IN-SPACe in the Department of Science and Technology. IN-SPACe is special. So I think the Act is required because of this.
I’m not very familiar with these things since I am from the private sector, but I think it’s because of that. And also the Act gets into what can and cannot be done. For example, what are the liabilities? Policy does not talk about liability. That will be in the Act. And the consequence of something that is not aligned with the Policy? All these things come under the Act.
About international commitments and Space Policy
Dasgupta: We have a lot of international commitments. For example, we have signed the Outer Space Treaty. We have signed the Moon Treaty. How do these reflect in the Space Policy?
Goenka: Obviously, the Policy ensures that nothing in the Policy is in contradiction with the international treaties we have signed. And IN-SPACe, while giving approvals, will have to ensure that we do not violate any international treaty. For example, the liability for any damage done in Space lies with the country, not the company.
Therefore, if the country is liable for a company’s actions, how does IN-SPACe pass on that liability to the company? Between the Policy and the Act, that’ll get resolved.
Legal Directorate
Dasgupta: Are you thinking in terms of having a Director for legal affairs?
Goenka: Yes. It’s not a Directorate per se, right now. We have legal affairs. We have three directors and the fourth box has legal, finance and administration.
Dasgupta: So you’re putting all that together — legal, finance and administration?
Goenka: Right now it is together. In the original, if you go back and read the Cabinet Note, it talks about a Legal Directorate.
Right now, I have put that on hold because we don’t have enough activities in that area. We only have a legal resource. Once we build ourselves up to a level where we need a Legal Directorate, we have the approval for it.
Dasgupta: It’s been very nice talking to you, sir.
Goenka: Thank you.
