Isro means business

The Indian Space Research Organisation (Isro) has taken a significant step forward to become a credible business player.

By entering into a deal with Boeing Satellite Systems to jointly develop and market communication satellites, it has signalled that in satellite making Indian expertise is by now tried and tested.

About a decade ago, Isro floated a subsidiary, Antrix Corporation, to give itself a commercial role. In the last few years it indicated its seriousness about doing business by deciding to outsource a good part of the growing volume of work that will result from its commercial initiatives.

When the space effort of the major powers was driven by Cold War rivalry, Isro was given a clear developmental mandate by the Indian government.

Today the Cold War is over and what Isro has been developing for decades has now become quite robust and rugged. Hence, historically the Boeing-Isro deal has come at the right juncture.

Isro's expertise is well developed not just in the field of satellites but also launch vehicles. It can now make both satellites and launch vehicles 20 to 30 per cent cheaper than leading global players.

Plus, it has developed and put in place a system of remote sensing satellites which can keep circling the globe and collecting data. An elaborate ground support system is in place to receive, treat and add value to that data.

Hence Isro is in a position to offer a one-stop solution to countries' civilian space requirements. It can build satellites, launch them and also provide ground support to run them.

Right now Isro can make one- to two-tonne satellites and launch them at competitive rates. It is also earning good revenue through Antrix by globally selling the remote sensing data collected by its satellites.

It has two key commercial goals before it "" take collaborative help to develop platform technology to build larger satellites and develop the GSLV III by 2008 to launch four-tonne satellites.

A key non-business requirement to emerge as a player of any consequence in the space business is to get along with the Americans. It has taken over half a decade to overcome the setbacks caused by the 1998 nuclear tests and the resulting US sanctions.

The level of US participation at the Bangalore Indo-US space conference indicates that the US is now recommitted to taking its strategic relationship with India forward.

The rising trend in US licensing of export of dual use technology to India says the same thing. Having the US on your side is tactically imperative because everyone has to rely on high technology components made by US companies.

A nation's space business is impaired if the US does not allow the export of such components. The Chinese cannot right now launch satellites owned by third parties because the US has put restrictions on component exports for such satellites.

India has also missed out on a couple of launches for this reason. Hence it is good news for Isro that the US is now playing ball again.