• Thirty Indian companies have responded to IN-SPACe's call to construct and operate Earth observation satellite constellations.
• This initiative aims to reduce India's dependence on foreign data for defense and infrastructure management.
• The market for such services is projected to reach $45 billion by 2030.
• This move is expected to spur innovation, create jobs, and strengthen India's position in the global space economy.

In a significant development, thirty Indian companies have responded to the call of the Indian National Space Promotion and Authorisation Centre (IN-SPACe) to construct and operate constellations of Earth observation (EO) satellites. This initiative is a pioneering private-public partnership aimed at reducing India's dependence on foreign data for defense, infrastructure management, and other critical mapping needs.

Pawan Goenka, chairman of IN-SPACe, stated, We have received 9 applications ... Each applicant represents a consortium, involving a total of 30 companies. This response came after the regulator sought expressions of interest (EoI) in July to build home-grown satellite constellations. This move is part of a broader strategy to monetize the sector and ensure data sovereignty.

India is making significant strides in its small satellite and data services market to establish a leading role in the global commercialization of space. The market for such services, which are increasingly crucial for industries ranging from telecoms to climate monitoring, is projected to reach $45 billion by 2030.

India's Space Market: A New Frontier

Among the applicants for IN-SPACe's latest initiative are startups such as Google-backed Pixxel and Baring Private Equity-backed SatSure, as well as larger entities like Tata Group's Tata Advanced Systems. Goenka anticipates that technical evaluations will be completed by the end of January, after which a tender will be floated to determine the winning bidder.

IN-SPACe's eligibility criteria include applicants raising or investing at least 850 million rupees ($10 million) in space-related activities, having a valuation of 8.5 billion rupees, or a turnover of 2 billion rupees in the past three years. Applicants must also establish spacecraft control centres in India or partner with ground station service providers for operational needs.

The government plans to loan up to 3.5 billion to the winner, with private companies expected to cover the remaining costs. This information comes from a source familiar with the matter.

Fostering Commercial Ventures and Private Sector Participation

Since opening the sector to private players in February, India has established a 10-billion-rupee venture fund to support space startups. The country has also unveiled ambitious plans for crewed space exploration and a mission to Venus, but the primary focus remains on fostering commercial ventures and scaling up private sector participation.

India currently sources much of its EO data from foreign companies and agencies like the European Space Agency (ESA) and the Indian Space Research Organisation (ISRO). IIFCL Projects Ltd, an advisory arm under the Ministry of Finance, is overseeing the bidding process.

This initiative is reminiscent of the historical event when the Indian government opened up the telecom sector to private players in the 1990s, which led to a significant boost in connectivity and economic growth. Similarly, this move to encourage private participation in the space sector is expected to spur innovation, create jobs, and strengthen India's position in the global space economy.