The Union Cabinet has approved the transfer of 10 in-orbit communication satellites from the government to New Space India Limited (NSIL). NSIL is a wholly-owned public sector enterprise under the Department of Space, for the purpose of streamlining space operations.
About New Space India Limited –
- The establishment of NSIL was announced in Budget 2019.
- One of the mandates of NSIL is to mass-produce and manufacture the SSLV (Small Satellite Launch Vehicle) and the more powerful PSLV (Polar Satellite Launch Vehicle) in partnership with the private sector in India through technology transfers.
- Its aim is to use research and development carried out by ISRO over the years for commercial purposes through Indian industry partners.
- It differs from ISRO’s existing commercial arm Antrix Corporation – Antrix will handle ISRO’s commercial deals for satellites and launch vehicles with foreign customers. NSIL will deal with capacity building of local industry for space manufacturing.
Other decisions taken by the cabinet –
- The cabinet also approved increasing NSIL’s authorised share capital from Rs 1,000 crore to Rs 7,500 crore.
- The NSIL board of directors will now be able to price transponders in accordance with market dynamics and global trends in the satellite communication sector.
- It is also permitted to offer and allocate capacity in accordance with its internal policies and guidelines.
- The transfer of assets is also likely to provide the company with the desired financial autonomy to realise capital-intensive programs, thereby providing a huge employment potential and technology spin-off to other sectors of the economy.
- The approval is expected to stimulate domestic economic activity in the space sector as well as increase India’s share of the global space market.
- This will enable NSIL to conduct full-fledged commercial space activities and to operate as a full-fledged satellite operator and will make doing business in the space sector easier.