Space Alert Volume VI, Issue 1 – January 2018 ORF Quarterly on Space Affairs CONTENTS FROM THE MEDIA COMMENTARIES FROM THE MEDIA 39 successes later, PSLV launch fails India’s Space Activities Bill – A Good Start IndiaISRO’s natural Mars partner Mission of US Successful, in space India but Needs to get Better technology:Makes History Congresswoman By Narayan Prasad L&T,ISRO Godrej, Inks Deal HAL, with Isro China to sign for pact Space to build The Act needs to consider breaking down the PSLVIndia rockets Offers Outer Space Expertise to activities within the space and space-based ISROBangladesh plans to scale up outsourcing, double ground activities to frame clear laws for the satelliteU.S. Dismisseslaunches Space Weapons Treaty conduct of business, international obligations, Proposal as “Fundamentally Flawed” national security concerns, protection of IP. Wi-Fi in India skies soon: TRAI to issue rules inNASA 15 days Plans to Send Submarine to A Review of The Space Activities Bill, 2017 ISROSaturn’s developing Moon a compact launcher for small By Ashok G.V. satellites OPINIONS AND ANALYSIS The bill, to achieve its stated objectives, must China launches VRSS-2 remote sensing however introduce clarity on the qualifying satellite for Venezuela criterion for securing a license, policy UAE Space Agency signs MoU with framework for access to government facilities, NEW PUBLICATIONS technology transfer guarantees, buy back Luxembourg guarantees for Indian businesses and startups Voyager 1 Just Fired Up its Backup Thrusters and a more rational approach to penalising for the 1st Time in 37 Years offences involving space activities and STRATCOM chief Hyten: ‘I will not support Intellectual Property ownership. buying big satellites that make juicy targets’ American Space Commerce Free Enterprise Act: A Look between the Lines OPINIONS AND ANALYSES By Daniel Porras NEW PUBLICATIONS A close look at the Free Enterprise Act shows that the US Congress is putting a great deal of faith in commercial actors, treating space EDITORIAL BOARD activities very much as “business as usual”. The Proposed US Space Corps: A Whether this is the best approach for all States Editor:Turning Dr. P Rajeswarioint for S Pillaipace RajagopalanSecurity? may or may not matter if the new regime works for the US. Associate Editor: Vidya Sagar Reddy 1 India’s Space Activities Bill – A Good ‘ease of doing business’ and can enable single- Start but Needs to get Better window clearances in licensing, promote better conditions for Foreign Direct Narayan Prasad Investment (FDI), provide regulatory transparency among others. The Department of Space (DoS), Government of India, recently put out a draft Space The nodal body can also take up the onus on Activities Bill to essentially regulate the providing support frameworks for export of commercial space activities in India. The space products/services related matters, frame rationale for a national space legislation set rules specific to authorisation, govern out in the draft of the bill is providing support insurance/liability in accordance to for the overall growth of the space activities in international obligations in critical activities. India and encouraging the enhanced The nodal agency can also act in providing participation of non-governmental/private regulatory support in the downstream sector agencies in space activities, in ecosystem with taking up the governance of compliance with the country’s international remote sensing data which today has not kept treaty obligations. pace with international standards. Therefore, having an independent nodal agency will While the initial reaction from the Small and ultimately impact entrepreneurial activity and Medium Scale Enterprises (SMEs) working on will make or break the stimulation and the Indian Space Research Organisation’s catalysis needed to enable a space-based (ISRO) programmes have naturally digital economy in the country. appreciated the effort towards creating a framework to regulate commercial space The term ‘space activity’ as presented in the activities in the country, a detailed reading of draft Bill seems to be vague, giving room to the draft shows that this may be only a several interpretations. The value chain of preliminary foundation for laying much space activities is quite complex starting from necessary detailing needed for it provides a manufacturing, services, upstream holistic support to commercial investment and development (conception to AIT to growth. operations) to downstream utilisation of products of remote sensing, navigation, The Act has not specified any specific communication satellites. Therefore, each Department or body within the Government of category has unique characteristics that need India to take ownership of regulating space regulation specifically tailored to their goals activities. Today, some of the activities such within the value chain to encourage as satellite-based communications need inter- transparency. Grouping all activities within Ministerial as well as inter-Departmental one large Bill may not provide justice to all inputs today. For example, the Wireless the different roles performed by commercial Planning Commission of the Department of space businesses in different parts of the value Telecommunications plays a vital role in the chain. assignment of frequencies for space-based communications. Therefore, a nodal agency From an implementation perspective, it makes that has involvement of other Government of more sense to break down the Act into India Ministries/Department that are multiple sections that will address specific stakeholders in the space activity will ensure parts of the value chain. Division of the 2 upstream and downstream and further alignment to the activity within the value breakdown to the activities within upstream chain. and downstream will allow legislators to provide a solid foundation to products/services Space is a tremendously difficult sector to do developed by the non-governmental and business in with barriers to entry being quite private sector within the value chain. high in some activities in both requirements of capital as well as requirements in IP. Inserting For example, the upstream activity can be blanket licensing requirements at the broken down in development and beginning of the tunnel for start-ups/SMEs manufacturing of satellites, rockets and will make it harder to even start their services rendered to enable getting space product/service development. Therefore, objects up into orbit. Similarly, the licensing may be placed as a requirement just downstream can be broken down into before the release of the product/service into development and manufacture of ground the market or export of it. This will ensure that segment, receivers, ground equipment and start-ups can focus on getting their services include broadcasting, VSAT, product/service ready and not worry about imagery/GIS, navigational products/services, licensing requirements to start developing any voice/data services. There are new services preliminary IP on their product/service. that are today emerging internationally such as satellite-based broadband, satellite-based IoT, From dealing with labilities perspective, the satellite-based blockchain services. Act uses a vague blanket cover against liabilities that is to be passed to the actors. One of the other critical aspects of Bill is the There is a very real necessity of dealing with licensing of businesses to perform space liability. Liabilities are very different for activities. It is important to note that the legal upstream activities such as spacecraft framework needed for operation for each of operations, launch/in-orbit operations against these activities are very different from each the use of space-based products/services on. other. Some of the activities such as development and manufacturing of launch There are several established models for vehicle and other such critical export- covering liability in international practices according to the kind of activity within the controlled items under SCOMET, need to have an enhanced legal framework to meet value chain (upstream/downstream) which can international obligations of non-proliferation. be employed and adjusted that resonates to the Similarly, there are legitimate national local Indian ecosystem. Using a blanket cover security concerns of downstream products without any details on the ceiling for activities such as images and communications. will make it extremely difficult for both the entrepreneurs as well as insurance providers to Using a blanket cover within the Act to use conduct any business. Therefore, the Act abstract licensing procedures to address should consider aligning towards international upstream activities and downstream does not best practices in dealing with liabilities. make business sense. Instead, breaking down The Act needs to consider breaking down the the Act into specific activities will allow to frame business rules and need for address activities within the space and space-based international obligations, national security, ground activities to frame clear laws for the environmental, health/safety, etc., in an conduct of business, international obligations, 3 national security concerns, protection of IP. It does not do justice to the entrepreneurial community if implemented as is. One of the exercises that can be conducted to align the Act to enable competitive ecosystem building for commercial space in India is to conduct a review of international best practices