Exploring Unchartered Territory? Laws for the Void

Exploring Unchartered Territory? – Laws for the Void

This 2 part series outlines the regulatory regime involving private sector participation in the space sector. This article explores the changes in the regulatory regime and the next one will explore the key challenges faced by private players (both domestic and international) in the Indian space sector.

What can the Indian space sector learn from the Avengers? Besides, the incredible budget and scale, the key takeaway would be - bringing experts together to achieve phenomenal results. We all remember the fascinating back stories, the strength of and the role each member plays to fill an essential need under the able guidance of a strong leader. The moment when the team does come together lights up the screen and assures the audience that all will be well. It isn’t all that different from how one may feel about India’s space journey. To build on this excitement, the Indian space sector needs the support of the regulations, patience from the private sector, and a unified vision from the regulators and key stakeholders to propel it toward success. In this article, we explore the journey of the regulatory regime to where it stands today and the possibilities for the future.

Let us begin with Skyroot Aerospace, a Hyderabad-based start-up (responsible for the first space flight by a private entity[1]) that unveiled its new rocket Vikram – 1, the first, in the Indian private sector with the capability to deliver satellites to the low earth orbit. It is scheduled for launch early this year [2]. Interestingly, Skyroot is not a lone ranger in the sky; other notable start-ups such as Bellatrix Aerospace, Dhruva Space, and Agnikul Cosmos have launched a green propulsion system[3], initiated the construction of a manufacturing plant[4], and launched payloads[5], and developed mobile launch systems[6], respectively.

An integral component of this growth has been regulatory changes including the introduction of the Indian Space Policy, 2023 ("Policy"), which provides clarity on what the Government envisions for this sector. To put simply, the Government recognized the need to allow private participation and the Policy provides the tools for its execution.

While the sector itself was and continues to be under the Department of Space, until a few years ago, no comprehensive legislation or policy existed for the governance of the sector and reliance was placed on the multiple independent regulations, policies, and international treaties formulated by the United Nations.

The responsibility of the sector was then primarily divided between the Indian Space Research Organisation (“ISRO”) and Antrix Corporation (“Antrix”). While ISRO managed the space exploration aspect of the governmental objectives and coordinated with international agencies, Antrix was made its commercial arm and handled technology transfer and industry cooperation for Indian players, in the global and domestic markets alike. However, with the growth in the sector, the need for comprehensive legislation governing all aspects of space law emerged.

To resolve this regulatory gap, the Central Government had, in 2017, initiated a draft bill i.e. Draft Space Activities Bill. The bill aimed to encourage greater participation from Non-Government Private Entities (“NGEs”) and promote commercial space activities. While the draft bill was a step in the right direction, it unfortunately lapsed and did not see the light of day.

Armed with the learnings of the past, the Indian National Space Promotion and Authorisation Centre (“IN-SPACe”) was formed by the Department of Space in 2020 to regulate and support the private space industry. IN-SPACe, being an enabler for the private space industry in India, functions as a single window nodal agency for such entities. IN-SPACe empowers private corporations to access ISRO's capabilities and resources which is exemplified by recent memoranda of understanding with entities such as Skyroot and Agnikul Cosmos [7].

As an extension of that, the Policy seems to encourage private player participation by categorizing the space ecosystem into 3 broad sections– (i) space for Earth; (ii) access to space; and (iii) space for space.

The Policy seeks to enhance technology transfer and introduce recognized concepts like space mining to foster growth and innovation. It opens new frontiers for the exploration and utilization of space resources, which will in turn contribute to India’s broader space policy objectives.

The Policy also defines the roles and responsibilities of different organizations, i.e., IN-SPACe, ISRO, NSIL (NewSpace India Limited), and the Department of Space.

• IN-SPACe will play a central role in promoting, guiding, and authorizing space activities and will act as the interface between ISRO and NGEs. It will be the single-window agency for authorizing space-related activities, including the establishment and operation of space objects, launch vehicles, ground facilities, and more. IN-SPACe will also focus on promoting industry clusters, collaboration with academia, and facilitating technology transfer from ISRO to NGEs.
   
• ISRO, as the national space agency, will be primarily responsible for research and development in space technologies and applications. It is expected to share its innovations with both the government entities and NGEs, emphasizing a facilitating role.
   
• NSIL will commercialize space technologies developed using public funds, manufacture space components, and service the space-based needs of government entities and NGEs.
   
• The Department of Space will continue to oversee the distribution of responsibilities, ensuring that various stakeholders fulfill their functions without overlapping. It will also interpret and clarify policy ambiguities and participate in international efforts, particularly related to remote sensing data and disaster management.

In the era preceding IN-SPACe and the Policy, the role of the private sector was limited to the supply of materials and equipment to ISRO[8]. The Policy offers a level playing field to NGEs but they also face a long road ahead with possible regulatory and business challenges about business operations, industry dynamics, technological and subsequent ownership aspects and liability concerns.

All things considered, the liberalization of the space sector is a step in the right direction and will be a catalyst in expanding the space industry from the current USD 8 billion sector to USD 44 billion in another 10 years[9]. It is, however, an enabling policy that requires the formulation of additional guidelines by each of the relevant agencies concerning their domains.

The key to sustaining this growth would be the introduction of comprehensive legislation to cover permissions and authorizations, operations, redressal, and possibly take a cue from the recent Telecommunications Act, 2023 which enables innovation by permitting the creation of a regulatory sandbox to encourage innovation.

A comprehensive legislation governing the space sector in India would play the role that S.H.I.E.L.D. did for the Avengers. If well executed, it will facilitate broadening the scope of the private sector in commercial space operations beyond the existing avenues like satellites, manufacturing, and allied assistance. One can only hope that the Department of Space steps into its role of Captain America to lead the way for the other stakeholders to set the stage for the next era of innovation and successful public-private partnerships in the sector.

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End Notes:

• https://www.thehindu.com/sci-tech/vikram-s-indias-first-private-rocket-lifts-off-from-isro-spaceport/article66152534.ece
• https://timesofindia.indiatimes.com/india/skyroot-unveils-vikram-1-that-will-launch-sats-next-year/articleshow/104683113.cms?from=mdr
• https://www.indiatoday.in/science/story/indias-bellatrix-successfully-tests-electric-satellite-engine-green-fuel-in-space-2484384-2024-01-04
• https://www.thehindubusinessline.com/info-tech/first-phase-of-dhruva-spaces-manufacturing-facility-will-be-ready-in-18-24-months/article67421148.ece
• https://www.moneycontrol.com/news/space/dhruva-spaces-p-30-satellite-space-qualification-paves-the-way-for-hosted-payload-solutions-11994471.html
• https://www.thehindubusinessline.com/companies/how-chennai-space-start-up-agnikul-uses-a-truck-and-four-caravans-to-launch-satellites/article66163424.ece
• https://economictimes.indiatimes.com/tech/startups/two-spacetech-startups-get-accessto-isro-facilities-expertise-to-test-rocket-systems/articleshow/86313816.cms
• https://aerospace.csis.org/wp-content/uploads/2021/12/20211213_IndiaSpaceBill_Rohera-compressed.pdf
• https://economictimes.indiatimes.com/news/science/indias-space-economy-has-potential-to-reach-usd-44-bn-by-2033-says-top-official/articleshow/104309396.cms?from=mdr

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