M.A.

(Space and Telecommunication Laws)

ANTRIX CORPORATION AND SPACE COMMERCIALIZATION: LEGAL ISSUES

AND CHALLENGES

By
Amardeep Singh
Roll No./I.D. No MASTL01_21
Year: 1 Semester: 1

GENERAL PRINCIPLES OF LAW

27-01-2021

NALSAR UNIVERSITY OF LAW

HYDERABAD
 CHAPTER-I
INTRODUCTION

In last couple of decades, India has secured its place among the leading countries in space
commercialization. From first steps on to the moon to launching its very own satellite, we
have come a long way. Its space program is one of the most well-developed in the world. It
has achieved numerous successes through its state-owned agency – Indian Space Research
Organization (ISRO). Recently another feather in the cap was added with the launch of
Brazil’s Amazonia-1 satellite last week from Sriharikota. With all the achievements its still a
long journey to achieve the true potential of space commercialisation in India.
 CHAPTER-II
ANTRIX CORPORATION-OVERVIEW

Antrix Corporation Limited (Antrix), was formed on 28th September 1992. It was
incorporated as a private limited company which is wholly owned by the Government of
India, under the administrative control of Department of Space (DOS). Antrix Corporation
Limited is commonly referred as the commercial arm of Indian Space Research Organisation
(ISRO), it promotes and facilitate the commercialization of space products and services
emanating from the Indian Space Programme. Antrix’s vision is to maximize the commercial
potential of the Indian Space Programme by promoting a robust space eco-system in India
exploring ISRO’s capabilities and emerge as a globally recognized space company.

The Mission statement of Antrix

Its mission is to enable, Indian Industries and Customers throughout the globe to reach the
full potential of Indian Space Technology. Antrix, being the PSU in the space sector,
attempts to provide platforms for Joint ventures/partnerships, to extend the industry
participation further and make India a one-stop destination for space commerce by;1

 Identifying technologies/products with market potential.

 Identifying core competencies in the industry.

 Bringing in financial viability.

 Complementing National Space Programme.

 To accelerate commercial and technical partnership with private industries.

Antrix has step up a prime example of strong management team to facilitate strong
leadership, transparency, active support and demonstrated commitment. The management
team is responsible for enhancing and managing key business verticals.
It provides strong leadership with clear visions, develop constructive policies for Antrix to
reach its full potential and define corporate culture and promote core values. Apart from
these, it ensures that the company meets its statutory obligations and exercises sound
corporate management and effective use of company resources.

1
https://www.antrix.co.in/
Antrix Corporation Limited, also acts as an interface between Indian Space Research
Organisation (ISRO) and international market/foreign customers for space products and
services. It helps facilitate the Indian Space Programme to commercialize and presents its
products on global scale. That’s why it is also known as commercial arm of ISRO. It handles
ISRO’s commercial deals for satellites and launch vehicles with foreign customers.
 CHAPTER-III
SPACE COMMERCIALIZATION OF INDIA

Historical backdrop:

The historical background of early industrial setting in India and the prime motive for the
origins of Indian Space endeavors, which were non-military, unlike those of other
economically advanced nations, who didn’t approve of India’s early entry into space
commercialization. The main objective of the Indian Space Programme, in an initial couple
of decades was self-reliance and to develop a robust national industry to support a
government-funded National Programme, which was maintained and executed by Indian
Space research Organisation (ISRO). Further, in the existence of a well-developed and
economic nation, space industrial capabilities in key segments of space activities are a
strength to rely upon for sustainable and growing commercial space. ISRO’s future looking
and well-constructed strategies helped in building of India’s space industry. As a result,
India’s space Industry is now extensive, though not fully Integrated.

Commercial space activities- A wider aspect:

Commercial space efforts around the world have evolved based on government spending,
particularly on military space programs that have created technological muscle in an industry
used to create commercial products and services. It was the push for telecommunications
deregulation that created, for the first time, a huge opportunity for the competitive
commercial space industry. This sector has flourished thanks to an enterprising private sector
with the support of government policies. The integration of space infrastructure into the wider
telecommunications industry, which is worth $5 trillion per year worldwide, has enabled the
creation of a vast value chain for space telecommunications services. By comparison, the size
of the entire space economy, including all government budgets and commercial revenues, is
$330 billion per year. A game-changing space capability, seen in the more recent past, has
been the phenomenal growth of positioning and navigation services. The extension of
satellite positioning and telecommunications services to mobile environments and the
provision of direct-to-consumer services via satellites are dual opportunities that hold great
potential for expanding markets, particularly in emerging economies around the world. It is in
these markets that infrastructure has yet to fully develop to serve disadvantaged populations
and where there are opportunities to manifest various downstream value creation activities
using space technology. Particularly for India, the propensity to consume of a large middle-
class population and the preferences of the youth-dominated population offer unique
opportunities for market development.

There are, however, many unique challenges for space technologies. These include limited
access to technologies, enormous risks, and excessive government intervention. It's no secret
that today's dominant space industrial enterprises evolved and grew due to the huge military
expenditures of the Cold War era. Industry consolidation over decades, technology transfer
constraints, and the dual nature of space systems had led to concentrated markets and islands
of capability in a global landscape. The metamorphosis took place in the post-Cold War era,
with the privatization of intergovernmental systems, such as Intelsat and Inmarsat and the
segmentation of space activities to facilitate the move towards free markets for space
services, on the one hand, and stricter controls on dual-use technologies on the other. The rate
of growth of commercial space had invariably been influenced and preceded by political
pressures in major markets, such as the United States. Until now, transformations in global
space commerce have remained more policy-driven than market-driven. Therefore, when it
comes to reshaping India's commercial space, the central role of political dimensions cannot
be questioned.

Leading Commercial Space Activities

It was ISRO’s transfer of technology and cooperation by industry Programme that sowed the
seeds for India’s space commercialization. During the 1990s, the idea for the formation of a
corporate front of the Indian Space Research organization was frowned upon, to assist in the
rapid expansion of ISRO’s industry interface activities for operational purposes. The concept
of Antrix Corporation as a commercial arm of ISRO was incorporated from the above idea.
Considering the expanding international dimensions of space activities, including the very
nature of space industry and commerce, officials realized, even during those tough times, that
the Indian space industry should be globally acknowledged and should not lose sight of
foreign opportunities and developing strengths.

And as a result, Antrix corporation limited was incorporated in September 1992, as a private
limited company, that was wholly owned by the government of India under the supervision of
Department of Space (DOS) with the objective of facilitating and commercialization of space
products developed by ISRO. In early times, it intended that Antrix would be responsible for
technical consultancy and manage transfer of technology activities in ISRO, to assist Indian
space industry. Since its inception in 1992 and until mid2011, Antrix was managed by a
board chaired by the Chairman of ISRO and the Secretary of the Department of Space. The
members of the Board included key leaders of ISRO’s centers, responsible for satellites,
launch vehicles, and applications, and a few eminent leaders of the industry in the private
sector. The integration at the board level with top-level ISRO management is a key factor that
ensured ISRO’s support to this company and allowed it to rely on ISRO’s infrastructure (both
the facilities and expert technical human resources) in executing customers’ programs. Due to
the capital-intensive nature of space investments, high risks, and the long gestation for returns
on investments, it was initially planned that Antrix would not own expensive facilities or a
large workforce, as found in many other public sector enterprises, and would instead leverage
the capacity created in Indian industries and in ISRO. Antrix, thus, aimed to set a new trend
by adopting a very lean and efficient structure in terms of human resources. One of the
maximum leaderships of ISRO, shortly after Antrix, attacked shortly after Antrix, began their
operations, it was that Antrix should play an active role for the growth of space growth in
India with synergistic interactions with the space industry, rather than everything
 CHAPTER-4
LEGAL ISSUES AND CHALLENGES

It was time for India to establish itself in the international space regime. The launch of
Sputnik in 1957 by the then Soviet Union initiated further exploration between nations. and
satellite operations. Its association with space began with the establishment of the Indian
National Committee for Space Research or today's Indian Space Research Organization
(hereafter ISRO) in 1962. The following year, under the guidance of scholar Dr. Vikram
Sarabhai launched his first rocket from the Thumba Equatorial Rocket Launch Station
(TERLS).[1] Additionally, the launch of its satellite Aryabhata in 1975 fueled the country's
technological advancement in space.

Fast forward to 2007, it paid off and India sent Chandrayan I, the first unmanned space
program to the moon. India's agreements with other countries/space agencies, such as
Memorandum of Understanding with National Aeronautics and Space Agency (NASA),
European Space Agency (ESA), Bulgaria and many other calls for the development and
modification of national space policy in India. As a result, ISRO has launched over 300
satellites for 33 different countries over the past half century, which is a remarkable feat.
Space in India has always been an exclusive domain of the public sector since time
immemorial. It's only been a few years now that it's finally opening up to the private sector,
because that will help get things into orbit and maybe beyond, so that the private sector will
provide services on a commercial basis. While the government will obviously regulate and
monitor what is happening in the space, it will ensure that the sector is not over-regulated as
it will attract investment or rush investment into jurisdictions with not so stringent regulatory
standards.A policy and law benefited from international recognition ", the legitimate
capitalization of unexplored entrepreneurial opportunities for the optimization of available
infrastructure and resources, and also promotes spaces for potential, national and
international entrepreneurs". Also

1. It should promote orderly growth of space business by providing legitimacy and due
recognition to ongoing space programs,

2. Promote the betterment of indigenous technology keeping pace with the international
standards,
 3. Providing opportunities to potential and competent space operators, domestic as well
as international,

4. Provide penalty to the violators of the space law.

Issue

Why India needs a robust space law?

Discussion

Background and charter of ISRO

In 1958, India have become a member of the advert hoc committee constituted with the aid of
using General Assembly, its Committee at the Peaceful Uses of Outer Space (COPUOS) and
its diverse subcommittees (a systematic and a technical one), the best global discussion board
for the improvement of global Space Law. This Committee has been indispensable in
negotiating 5 global treaties masking area of which India is a signatory, namely:

The Outer Space Treaty, 1967; this treaty governs the sports of states in exploration and use
of outer area, consisting of Moon and different celestial bodies.

The Rescue Agreement, 1968; the settlement seems into the rescuing of astronauts, their
secure go back and the go back of the items that were released into outer area.

The Liability Convention, 1972; this settlement speaks approximately global legal
responsibility for harm due to area items.

The Registration Convention, 1975; that is a conference on registration of items in outer area.

The Moon Treaty, 1979; the settlement governs the Activities of States at the Moon and
different celestial bodies.

ISRO implements several packages of the Department of Space (DOS hereafter) to sell area
generation in India, inclusive of the Launch Vehicle Program, INSAT Program for
broadcasting, telecommunications, the Remote Sensing Program for the software of satellite
tv for pc imagery for developmental purposes. Furthermore, to sell area technological know-
how ISRO gives offerings (as in line with DOS guidelines) inclusive of area infrastructure for
telecommunication wishes of India, satellite tv for pc offerings for climate broadcasting,
forecasting, meteorology and so on, satellite tv for pc imagery and so on. There exist
numerous establishments which function in near collaboration with ISRO Satellite Centre
(ISAC), Space Applications Centre (SAC), ISRO Inertial Systems Unit (IISU) and National
Remote Sensing Agency (NRSA), Liquid Propulsion Systems Centre (LPSC). This
partnership has brought about the involvement of approximately 5 hundred small, medium,
huge scale industries via the approach of the procurement contract, knowledge transfers or
provision of technical consultancy.

India was a signatory to the Convention on International Liability for Damage Caused via
way of means of Space Objects, 1972 on the grounds that its inception. With the modern
difficulty of area difficulty doing its rounds, India became concerned withinside the centre of
an worldwide dispute after area particles from an Indian satellite tv for pc, landed in a hamlet
in Japan. Thus, as a signatory to the convention, India had an absolute legal responsibility to
pay for the harm as a result of its satellite tv for pc because it became returning to the earth.
With no country wide area regulation and coverage at hand, it is, of course, tough for India to
decide and quantify the harm brought on and to squeeze out of the situation. No doubt, area
regulation and coverage might pass a protracted manner withinside the solidifying the
distance struggle fare approach and security. However, this may now no longer be denied that
India is sporting itself ahead, and is clear with the system of Indian Space Act, the draft
namely, Geospacer Information Regulation Bill, 2016, which remains pending consideration.
As in keeping with ISRO’s leader, K. Sivan, “A Space Act might assist the authorities
address felony problems bobbing up from gadgets placed up in area and for what occurs to
them in orbit, or due to the fact for them.” The Bill intends to police acquisition, eBook and
distribution of geospacer data of the country; this appears to be a slender scope due to the fact
proper now we want a regulation that more often than not protects the sovereign, public and
industrial hobbies on all aspects. As for the Bill, Nirmala Siatraman declared his aim to
convert India right into a self-reliant one. After the authorities of India placed out
bureaucracy for the clicking release, the ISRO leader made a assertion approximately how
India is taking its child steps. Two bills, the draft Geospacer Information Regulation, 2016
and the Draft Space Activities Bill, 2017 had confronted vehement complaint from several
stakeholders, as a result the latter Bill, which inspire to take away the authorities monopoly
and permits participation of non-governmental entities withinside the area forum.
India is among the global leaders in space exploration. ISRO has spearheaded India’s success
in space. These include various satellite launch, space-launch vehicles, and a range of
associated capabilities. But the private sector has not contributed much to it. India is lagging
in harnessing the power of private innovation in the space domain. This not only limits the
exploitation of space for economic development, but has serious national security
implications.
 Conclusion and suggestions

Structural reforms and strengthening of research and exploration

To be able to achieve the policy statement into reality requires a major input of government
led space activities. Only then will space commercialization in India be able to achieve its
true potential.

Firstly, the Need of a space policy, which is hanging for a long time now. Such a policy is
needed to encourage a vibrant space Industry which is independent of Indian Space research
Organisation and the department of Space. Such a policy must be derived from the Space
industry and users communities, and not emerged by ISRO-DOS. There is currently one such
draft in existence by an Organisation, Takshashila Institution, which can be considered by
policy makers.

Secondly, ISRO must be restructured by eliminating all operational activities, as well as the
facilities and services that go with them. ACL should be used for all services. ISRO's massive
government-funded facilities should be converted into national space technology fabrication
and testing assets that are open to both ISRO-DOS and industry. The NSIL should be
repurposed to manage these assets on behalf of the Indian government.

ISRO should focus on advanced launchers, payloads, and ground systems for Earth-related
applications, as well as Space Sciences and Human in Space programmes. While interaction
with ACL and NSIL will be required, it should be strictly commercial in nature, as it is with
other co-travelers.

Commercialization of capabilities and scalability of societal impact

One of the most intriguing ideas that has recently been posted is the possibility of
independent industries meeting the needs of defense forces independent of ISRO, which is
essentially a civilian Organisation. It is also possible that private communications service
providers, as is the case in the rest of the world, could fund communications satellites using
MEO, possibly for 5G services. Remote Sensing constellations may be subject to the same
restrictions.

The government should break away and do only what industry cannot. Among these are
advanced technologies and systems for healthcare, education, space sciences, and human
spaceflight. Allow the industry to find its own path and do its own thing, guided by an
enabling Space policy that should be implemented.

Future Market perspective

The ongoing trend of deregulated industries in information and communication services in

the context of a growing Indian economy, whose GDP is expected to reach $86 trillion by
2050, presents an unprecedented opportunity for competition-driven growth for space-based
services. The current capability of space systems to directly service individuals and homes (as
in PNT, DTH, or broad band delivery applications) enables a paradigm shift of these services
towards mass markets, with enormous additional potential to expand user base and diversify
applications. This potential is well positioned by India's demographic advantage in the
coming decades, as there will be an estimated 800 million working-age people by 2050.

In addition, the economic development trends will also bring out a huge middle-income
consumer and population. This bodes well for the expansion of a variety of information and
communications services that can be supported by new generations of space systems, such as
high-performance satellites and constellations of agile, low-cost, high-performance remote
sensing spacecraft services on demand. Various applications, including GIS-based decision
support, positioning and location-based services, homeland security, disaster management,
broadband connections to remote rural areas, and mobile multimedia services represent
important untapped potential. B. TV broadcasts directly at home, in recent years there has
been a demand for satellite capacity that has exceeded supply. The applications mentioned
will generate continued demand for space systems and opportunities for international
cooperation.