Space

Contractors

A large portion of India's aerospace expertise remains within the Indian Space Research Organization (ISRO), but a commercial industry continues to be nurtured. ISRO created the Antrix Corporation in 1992 to market space and telecommunications products, and in the same year established a policy to promote the commercial procurement of space technology components rather than their manufacture within ISRO. Today, approximately 50% of the ISRO budget goes to Indian industry, although a subsequent portion may be used to purchase foreign equipment. Facilities construction and development are often provided by a separate Civil Engineering Division of the Department of Space (References 25, 29-30).

Antrix Corporation Limited is a wholly owned Government of India Company under the administrative control of the Department of Space, Government of India. Antrix Corporation Limited was incorporated as a private limited company owned by Government of India, in September 1992 as a Marketing arm of Indian Space Research Organization (ISRO) for promotion and commercial exploitation of space products, technical consultancy services and transfer of technologies developed by ISRO. Another major objective is to facilitate development of space related industrial capabilities in India. Antrix is also providing Space products and services to international customers worldwide, such as EADS Astrium, Intelsat, Avanti Group, etc.

Antrix has been awarded the "Miniratna" status by the Government of India in 2008. With fully equipped state-of-the-art facilities, Antrix is a one-stop-shop for any of the space products, ranging from supply of hardware and software including simple subsystems to a complex spacecraft, for varied applications covering communications, earth observation, scientific missions; space related service including remote sensing data series, transponders provision; launch services through the operational launch vehicles (PSLV and GSLV); mission support services; and a host of consultancy and training services.

An extensive range of ISRO's hardware and access to its services are available commercially through the Antrix Corporation Limited, based in Bangalore. However, ISRO’s industrial reach is felt across the Indian economy with total, direct, employment in the Indian space program is estimated to be in the region of 40,000. Over the last ten years ISRO has built-up strong partnerships with Indian industry and some 400 Indian firms now supply goods and services into ISRO’s space programme. ISRO is committed to forging strong partnerships with Indian industry, academia and the user community and is determined that Indian industry will become a major partner in India’s space efforts and will play a meaningful role in the expanding world space market.

The Department of Space has nurtured a strong partnership with Indian Industries in realizing the objectives of the Space Programme. More than 500 small, medium and large scale Industries participate in the program in the form of hardware development and supply, software and other services. Almost 60% of a launch vehicle cost flows to Indian Industries. In the recently developed applications, almost 100% of the ground segment equipments/ services for Tele-education and Tele-medicine have been farmed out to Indian Industries. The Industry participation policy of the Department has adopted several aggressive measures to promote the participation of Industries in the Space Programme. The Department, so far, has developed and transferred about 300 technologies to Industries for commercialization. It is important to note that this partnership with Industries has enabled the Department to meet the growing challenges of advanced technology, handling complex manufacturing jobs and increasing demand for space services without any significant increase in in-house manpower.

Indian space industry has made significant contribution towards realization of systems and subsystems required for Indian Space program and continues to do so. International cooperation is an integral part of space activities and ISRO continues to lay importance on bilateral and multilateral relations with international space agencies and space related bodies with the aim of taking up new scientific and technological challenges, building and strengthening existing ties between countries. Space industry is inherently technology intensive and is dependent on long term research and development for its future viability. Space ventures promise an evolving sector with huge returns. But the execution risks are too high. Risk elements involved in space sector are related to technological, industrial, commercial, financial, legal / legislative and in particular insurance.

Although India is almost a fully autonomous space power running a comprehensive national program, ISRO is not quite ready to set up its industrial capability as a separate industrial entity, able to be privatised or enter joint ventures with private sector partners. This is important as ISRO also plays the role of prime contractor to the Indian space program and sub-contracts almost 40 per cent of the workload to Indian industrial companies. ISRO is now beginning to reorganise its operations so that it can focus on general R&D and system development thus allowing industry to take the lead in hardware manufacturing.

Although the commercial marketing arm of the Department of Space, Antrix Corporation Limited, has, at present, little real autonomy it is the primary route for companies approaching the Indian market for the first time. Antrix also hold a detailed database on the Indian space industry which might prove a useful tool for companies wishing to identify potential Indian partners. Taking time to build a relationship with an Indian company would give a degree of access to the Indian market that would be most unlikely to achieve in attempting straightforward direct sales and could open up export opportunities in third markets.

Given India's goal for self-sufficiency in space and ISRO's aim to provide the country with space capabilities much cheaper than those available on the international market, opportunities for foreign firms to break into the protected Indian market are rather limited. Opportunities to supply ISRO and the Indian space program do exist, as ISRO continues to buy a considerable amount of components and sub-systems in Europe (particularly from France, Germany, Belgium and Italy) and the USA. Some estimates put this figure as high as 25 percent overall and perhaps as high as 90 percent for components.

During the three years starting from January 2013 until December 2015, a total of 28 International customer satellites belonging to 9 countries were launched viz. Austria (2), Canada (5), Denmark (1), France (1), Germany (1), Indonesia (1), Singapore (7), UK (6), USA (4). These satellites were launched onboard India’s Polar Satellite Launch Vehicle (PSLV) under the commercial arrangement entered into between Antrix Corporation Limited (Antrix), the commercial arm of ISRO and the international customer. Antrix has earned revenue of 80.6 Million Euros through launching of these 28 international customer satellites. The Cryogenic Rocket Development Programme is funded by the Government.