
or
Not sure how many of the readers will reminisce these lines and relate them to Space City Sigma – our very own version of Star Trek. What DoorDarshan foresaw and proposed in 1989 – The possibility of Space Travel on a non-government vessel – and hence private participation in Space, was disposed by the Powers That Be at Department of Space. It took the might of the Pandemic for the Government to unshackle Space – The Final Frontier – Where no Private Indian Company has Gone Before – when the Finance Minister, in her speech on May 16, 2020, declared the intent of the establishment to allow private players to access the space sector, including ISRO’s facilities, by providing a level playing field in Satellites, launches, and space based services, in addition to future projects for planetary exploration, outer space travel, etc., being opened up for the private sector.
The suitors – private players that have been waiting in the wings for at least a decade, if not more – were skeptical. They had heard this before. Will this “policy announcement” which is part of the generic call for “Atma-nirbhar Bharat” be just a media / populist statement, or will we actually see the privatization of Space during our lifetime? Lo! And Behold, the Union Cabinet, on 24.06.2020, just over a month after the FM’s announcement, created IN-SPACe – the Indian National Space Promotion and Authorization Centre.
The Press Information Bureau, in a public statement, recorded, that “The newly created Indian National Space Promotion and Authorization Centre (INSPACe) will provide a level playing field for private companies to use the Indian space infrastructure. It will also handhold, promote and guide the private industries in space activities through encouraging policies and a friendly regulatory environment.” As part of the “reforms” announced by the Union Cabinet, “The Public Sector Enterprise ‘New Space India Limited (NSIL)’ (set up in 2019), 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”. Lastly, “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 private sector through an ‘announcement of opportunity’ mechanism.”
Why so? Status Quo is terribly difficult to dislodge. And there is no clarity on the scope of IN-SPACe or the level of participation that is likely to be accorded to the private sector, even in the process of determining the contours of their participation. Questions that are already doing the rounds include whether there will be a consultation process on what the private sector wants or how it can participate? Will there be an update on the antiquated and lopsided policies in this domain? Who will review the policies? Will it be ISRO? Will there be a new law regulating commercial activities in space?
Areas where the Government had a monopoly, till recently, have been opened up to the private sector from time to time. Beginning with computers in the 1980s, Broadcasting in the 90s, Telecom in the latter part of the same decade, Power, Fuel and now Coal in the last two decades – the country and the economy has witnessed and reaped the benefits of privatization.
For each such effort to succeed, however, there has been a progressive policy and, most importantly, a legislation that sets out – hopefully, clearly – the rights and obligations that a private entity can expect. The need for clarity in this regard stems from prior experience, where, like the case of its predecessor industries mentioned in the foregoing paragraphs, the absence of clear rules and complete lack of roadmap for the private sector, the lines are always blurred between the role of Government (in this case, ISRO) as a regulator, competitor, licensor, permission grantor, etc.
The further challenge is that the absence of an appropriate law and operation of an ambiguous policy results in a classic situation of a private entity running from pillar to post between the myriad departments – Department of Space, Ministry of Home Affairs, Ministry of Defence, Department of Telecommunications, Telecom Engineering Center, the Network Operation and Control Center, and the Wireless Planning and Coordination Wing & Standing Advisory Committee on Radio Frequency Allocation, for the purposes of participation in the sector.
Each of these agencies control a specific element of the space activity, whereby one allows for the necessary certification of the equipment, the other/s provision for orbital slots, network certification, interconnection requirements, and apposite license for the activity to be undertaken. The investment from a private player in absence of clear divisions and owing to involvement of multiple agencies, is high in terms of time as well as costs. The latest decision does not bring along with it the necessary change in the policies which are in place.
What is required, therefore, is an unambiguous set of policy directives that lay out the roadmap for effective participation of private industry in various aspects of the space sector, including satellite communications, remote sensing, weather monitoring, etc. While this will set the tone for the broad contours of expectations of industry, however, for the sector to attract investment and participation commensurate with its potential, the real need is for a legislation to be enacted along with a regulatory authority and dispute resolution set up, perhaps along the lines of the TRAI.
Earlier, in 2017, the draft Space Activities Bill was released, and comments were invited from the public, which also sparked a lot of discussion around the subject and there was a sliver of hope offered to the private players. However, after powered discussions, the dreams of private players were crushed, and the bill is yet to see the light of the day. Along with it, the promise to reform the sector and increased nongovernmental / private participation was also deflated.
To ensure that the sector truly sees participation from the private participation, there is a lingering and pressing requirement to ensure:
While the government has made commendable efforts in allowing the offering of services like Flight and Maritime Connectivity1, and remotely piloted aircraft systems2, there are problems which persist in the segments. For instance, if we look at the issues pertaining to in-flight connectivity, owing to the application of an archaic law3, and vaguely defined concepts, there is a lot ambiguity as to the permissibility requirements for the utilization of common products and services like mobile communications on board. To be fair, the concerned agencies have opened their channels to converse with the representatives and issue clarifications to the extent possible.
The interests of the private sector will be suitably addressed, as and when the best practices and the available technological capabilities are captured within the scope of these agencies, and the laws that are adopted and implemented by these agencies. As the State continues to create agencies like the NewSpace India Limited (NSIL)4, there will be a certain level of discomfort amongst the private players, and may dissuade them from establishing their creditworthiness to a not-so unbiased system of regulatory, and licensing framework.
It is essential that the concerned authorities also take into account the recommendations that the Telecom Regulatory Authority of India in its impartial wisdom has made to the Department of Telecommunications in respect of SATCOM services and practices. There are times, when the TRAI recommendations have carried the global practices and stressed on their adoption and implementation in the Indian scenario5; it is a matter of grievance that the same did not find inclusion in the final versions of the policies, laws.
To bring in stronger and effective participation of the private sector, it is necessary, goal-oriented procedures and processes are adopted by the agencies, affording the private players the wings they need to soar high. Till we find such comfort being offered in law, never regret thy fall, O Icarus of the fearless flight; for the greatest tragedy of them all is never to feel the burning light ~ Oscar Wilde.
Tags: TMT Law Practice
Abhishek Malhotra is the Founding Partner of TMT Law Practice. He has nearly two decades of experience in the legal realm and is member of both the State Bars of California, USA and Delhi, India. His primary areas of expertise are Intellectual Property, Competition Law, Dispute Resolution and the Technology, Media & Telecommunications industries.
Bagmisikha Puhan is an Associate Partner at TMT Law Practice. She graduated in 2014, and specializes in Technology Law, advising clients in the ITeS, media, healthcare and pharmaceuticals, space sectors on regulatory, policy, compliance and transactions. A member of the Telemedicine Society of India, Bagmisikha also conducts capacity-building and training programmes. Bagmisikha has worked in-house as part of the Global Data Privacy Team of an Indian MNC and worked extensively in matters pertaining to the data privacy and data protection laws of several jurisdictions.
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