The transfer of ten in-orbit communication satellites to public sector business NSIL, which is under the administrative jurisdiction of the Department of Space, has been authorized by the Union Cabinet. The cabinet also authorized expanding NewSpace India Limited’s (NSIL) permitted share capital from Rs 1,000 crore to Rs 7,500 crore. NSIL was required under the space sector reforms to conduct end-to-end commercial space operations and to operate as a full-fledged satellite operator.
About the 10 in-orbit communication and NSIL:
- The transfer of these assets to NSIL will also give the firm with the needed financial autonomy to execute capital-intensive programs/projects, resulting in significant job creation and technology transfer to other sectors of the economy.
- This decision is likely to expand India’s participation of the global space market and stimulate local economic activity in the space sector.
- NSIL was required under the Space Sector Reforms to conduct end-to-end commercial space operations and to operate as a full-fledged satellite operator.
- NSIL’s role as a single-window operator will also make conducting business in the space industry easier.
- The NSIL Board will now be able to price transponders in accordance with market dynamics and worldwide trends in the satellite communication industry.
- NSIL is also permitted to provide and assign capacity in accordance with its own internal policies and procedures.
The Union Cabinet has also approved the signing of several memorandums of understanding, including one between India and the United Arab Emirates on cooperation in industries and advanced technologies, another between Japan’s National Institute for Environmental Studies and Aryabhatta Research Institute for Observational Sciences on joint research on air quality and climate change, and another between India and Australia on technical cooperation for the Australia-India Water Security Initiative (AIWASI).