Industry upbeat as space policy to raise private sector play, funding

More than 1,500 micro small and medium enterprises, over 140 startups and rising investor interest, the Indian Space Policy 2023 is set to be a fillip for the space sector that is already buzzing with private sector interest. Based on available industry data, the sector has seen funding to the tune of around $258 million so far, out of which more than $175 million came since 2020 after the government announced space reforms in June 2020.

According to industry experts, the new policy is a continuation of reforms in June, 2020, in the space sector towards enabling private players to provide end-to-end services. Interestingly, around 107 out of the total 140 start-ups that marked their presence in the sector since 2012 came after the June 2020 reforms only, indicates data shared by the Indian Space Association (ISpA).

The new space policy that the Indian Space Research Organisation (ISRO) came out with last week is focusing on encouraging and promoting greater private sector participation in the entire value chain of the space economy, including in the creation of space and ground-based assets. This also includes participation from new generation entities and global majors in space exploration and in having a human presence in outer space.

“After the formation of INSPACe (an autonomous body acting as a bridge between the private sector and ISRO), ISRO has started providing help, wherever startups require it. This policy gives clarity to everybody who is interested in the space sector. Now, non-government entities will be part of all the domains, be it space communication, remote sensing or any other upstream, downstream, and midstream activities,” said A K Bhatt, director general, ISpA.

Private firms’ first major achievement came on June 30 when a PSLV-C53 mission carried payloads from Indian space start-ups Digantara and Dhruva Space, backed by IN-SPACe. This was followed by another private sector success story on October 23 as 36 satellites by OneWeb (not a start-up, though) were launched in the maiden commercial mission of LVM3 -- India’s heaviest launch vehicle, also known as GSLV Mk III. On November 18, another landmark was achieved when India successfully launched its first privately developed rocket, the Vikram-S, a 545-kg rocket developed by Hyderabad-based Skyroot Aerospace.

In terms of satellites, plans by Dhruva Space, Pixxel, Azista Aerospace are the major ones on the pipeline. Azista Aerospace and German player Berlin Space Technologies have joined hands for a satellite production capacity in Ahmedabad. These companies are set to come up with satellites made completely in Ahmedabad and open up doors for exports from India. “In addition to these, there are large players like L&T, MapmyIndia, Ananth Technologies, and Alpha Design, who are already providing services to ISRO.  They will be able to provide their services to private players too.  As far as funding is concerned, the policy will attract more foreign funds to India,” Bhatt added.

Among the space companies, so far, Skyroot has got the maximum funding of $68 million in various rounds, followed by Team Indus, Agnikul and Pixxel among others.   “The strategy focuses on the delivery of goods and services, using space technology, and for creating a “stable and predictable” regulatory framework for the private players in launch services, space communication, space transportation, and any other commercial space activity, which may be deemed fit by IN-SPACe. In addition to this, the policy has clearly demarcated the roles and responsibilities of the regulators and licensors in this ecosystem,” said Abhishek Malhotra, Managing Partner TMT Law Practice.

“The policy provides much-needed clarity about the role of various agencies regulating space communications, including the Department of Space, ISRO, and the newly formed IN-SPACe. It will hopefully enable single window clearances for Non-Government Entities which would improve the ease of doing business for them. ISRO enabling open data access from its remote sensing satellites will prove to be a key enabler of innovation,” said Iqbal Khan, Partner, Shardul Amarchand Mangaldas and Co. 

Flying high

Startup	Funding so far (In Million $)
Skyroot Aerospace	68
Team Indus	35
AgniKul	34.5
Pixxel	32.98
Bellatrix	11.63
Vesta	10
SatSure	5.63
GalaxEye	3.5
Dhruva	3.44
Digantara	3.13
Total Since 2017	220

Source: ISPA