US firms stall satellite launch deal

Repeated efforts since 2010 to firm up an agreement to facilitate the launch of US commercial satellites from India have failed to reach a conclusion as, according to highly placed sources, American companies have been stalling the negotiations fearing competition from ISRO.

Even during Prime Minister Narendra Modi’s visit to the US earlier in June, he could not force a breakthrough in the matter, sources in the know informed this newspaper.

“The chief concern among American space companies is that since ISRO subsidises commercial launches, these companies cannot compete with India at such low prices,” a highly placed source aware of the developments said.

Sources further said that despite the Modi government being quite keen on finalising the Commercial Space Launch Agreement (CSLA) with the US, its fate continues to hang in balance owing to roadblocks from American companies.

Incidentally, both nations had finalised the Technology Safeguards Agreement (TSA) in July 2009 to facilitate the launch of US-licensed non-commercial satellites from India. This agreement was renewed in 2014 and non-commercial satellites having American components are being regularly launched from India. In April 2016, four American satellites were launched from India.

However, despite several rounds of meetings between the India-US Joint Working Group since 2011, no unanimity has emerged between the two nations on firming up the CSLA.

The talks between India and the US had started on finalising CSLA just before US President Barack Obama was scheduled to arrive on his first India visit in November 2010.

Commercial satellites provide data to be used for commercial purposes. Satellites used to beam television content is a prime example of a commercial satellite.

Non-commercial satellites are basically used for scientific or educational purposes like Earth-imaging satellites — which are normally launched from India throughout the year.

Sources though vehemently deny that there are any political reasons behind the deadlock over CSLA, and claim that reasons behind it are purely driven by business concerns.

Prior to Mr Modi’s visit to the US, there was anticipation that the matter would be taken up for discussion, however sources pointed out that owing to strong reservations from US companies dealing with space operations, no breakthrough could be reached on it.