The Central government established IN-SPACe as a single window agency for space sector activities of private entities about three years ago. What are its key achievements?

IN-SPACe was formally in place in February 2022. We have the responsibility of regulating and promoting private commercial activities in the space sector. The regulator’s role is new. There was no such activity before the new Space Policy opened up the sector to enable the participation of the Indian private sector in the entire gamut of space activities. Until then, ISRO was self-regulated. So, our initial task was to streamline the regulation process in a manner consistent with government policy. The process of authorising and supervising space activities of non-government entities, including building of launch vehicles and satellites, is in place. That’s running smoothly. We have received 577 applications (as on November 1) from 383 companies. While 176 are for construction of satellites, 110 relate to space applications, including earth observation, navigation and communication. Among the applicants, 168 are start-ups, 69 MSMEs and 92 large industrial houses.

What about the promoter’s role in IN-SPACe?

We have set a direction for the future by giving the decade’s vision about developing a $44 billion space economy by 2033. We have also clearly said where the growth will come from. Space communication is the most promising with a potential to generate $14.8 billion. Navigation ($9.3 billion), earth observation ($8 billion), satellite manufacturing ($4.6 billion) and launch ($3.5 billion) are the other segments that will contribute to this journey⁽¹⁾. Right now, the most visible thing is the operationalisation of the ₹1,000 crore venture capital fund the government has announced for promoting space start-ups. As the nodal agency, we will give ₹1,000 crore to the fund managers, who will invest in companies in the sector. We are also in charge of facilitating the transfer of technology from ISRO to private companies.

ISRO has partnered with the private sector to build satellites and launch vehicles since the beginning. What has changed now?

Whatever the private sector was doing was at the behest of ISRO. It did not have a space business. It just supplied to ISRO. Now, private sector players are into this business. So, if a company has a launch vehicle, it will earn from it. Earlier, they were building some parts for ISRO. Now, they are building their own satellite. Also, IN-SPACe is facilitating the transfer of ISRO’s small satellite launch vehicle (SSLV) technology to the private sector. This is happening for the first time and will bring private companies into the sector in a big way.

With demand for small low earth orbit satellites increasing, every nation seems to be in a race to be active in the space sector. What is India’s strength?

If you don’t have the right to win, you can’t win. So, what is our right to win? First, the reliability of whatever we have done is right up there. The success percentage of our launches is very high. Second, ISRO itself is highly capable, and our private sector is working closely with it. Third is our low cost. Fourth is the infrastructure that we are creating. We have a launch centre just for small launch vehicles. It will be cost effective and ensure a quick turnaround. Another thing is our IT strength. India will have an edge in all the applications. Finally, the push from the government is removing the roadblocks in doing business.

Overseas investors are interested in these start-ups. How do you see that as a regulator given the sensitivity and importance of the sector?

We have significantly liberalised the FDI policy for the space sector. We are not doing policing to see who will invest in the start-ups. But there is full control as a regulator. We have liberalised investment by foreign companies or investors. We have put checks and balances. So, if an undesirable thing is happening, we make sure we stop it through the process of authorisation.

The importance of space in defence is increasing. Are there any limitations in approving dual-use technologies?

For technology transfer, we ensure that anything with dual use is either not transferred or transferred with checks and balances. That is one part. Second, while giving approvals for a civilian application, we see how it could be used for something else. There, we put a control, either by not giving the approval or putting in clauses on what cannot be done.

You steered Mahindra & Mahindra for decades. What are the takeaways you bring to this unique role as a regulator/promoter?

The primary takeaway is to look at all the decisions from the side of the receiver. Once we do that, we often see that ours may not be the right approach and we need to — without compromising — ensure that we are not becoming burdensome on the other side. Second, we will make sure that the regulatory sanctions are not constraining the industry’s growth. So, as a regulator, what should we look at? What we are regulating is safety, security, international obligations and undesirable actors. We are not regulating technology. We shouldn’t slow down the growth of the sector.

The government is preparing a Space Bill. What is the status?

It will not be fair for me to talk about what the Bill will contain as it will soon be in the public domain for consultation. It’s going through a finalisation process and today’s draft may not be the one that will be put out for consultation. But one of the primary things it does is to make IN-SPACe a parliament-approved body and, therefore, give it legal powers which it does not have today.

What is the infrastructure IN-SPACe is developing for the sector?

Three-four things are happening. One is the launch centre. The second centre, for small launch vehicles, is coming up in Vishakhapatnam. It’s been funded by the government of India and will be managed by ISRO. The second thing we are doing is to get state governments to set up manufacturing clusters. We have two MoUs, with Gujarat and Tamil Nadu. The Gujarat cluster will focus more on satellite manufacturing and Tamil Nadu on launch vehicle manufacturing. We are also building common infrastructure within INSPACe. We already have a small set-up in our headquarters in Ahmedabad. That will pretty much meet all the requirements of companies that may not want to spend on capex.

The government is vocal about India’s space tourism potential. Have any international players like SpaceX shown interest in engaging with Indian companies or investing in India?

There is no concrete plan on the table. Given the kind of investment needed, I don’t think Indian entrepreneurs are looking at this opportunity very seriously. However, we have been talking to some companies outside India. These companies, which invest in space tourism, are seeing if there is a case for them to come to India. There is certainly a possibility because India has enough people with money to pay for space tourism. As of now, we have not signed anything.

One-fourth of your $44 billion target is expected to come from exports. How do you plan to achieve it?

IN-SPACe is beginning to do B2B interactions where we bring our private sector players and companies of other countries together to explore business opportunities. So far, we have done that with six countries — Australia, Luxembourg, Japan, Italy, Sweden and Singapore. Our role will be that of a promoter, not a regulator, to give the companies visibility and connect them to potential customers. We are also signing MoUs with some of these countries for joint business or technology development. The first started some two years ago. We have some definitive traction there. Joint projects have been signed. Australia is the big one. The Australian Space Agency has also taken a keen interest in collaborating with Indian space companies.

Dozens of space start-ups have come up in India in recent years. Several large companies are also entering this space. Do we have enough skilled resources?

We are trying different ways to ensure supply of skilled resources. We have collaborated with ISRO experts to design short-term courses. We do one course every month for the industry representatives. We are also working with technical universities to offer space courses. One of our most powerful assets is the pool of retired ISRO scientists. They are playing a big role in handholding youngsters. Many are joining as advisors in young space companies. IN-SPACe itself has taken four people on its rolls. We will make these people available to the companies. We are also putting out a list of certified consultants chosen from among retired ISRO employees.