Modi government rushses to silence disquiet in ISRO over accelerating privatization  

New Delhi, 07 September— The Modi government has sought to nip the trouble in the bud over growing fears, disquiet, and concern among the staff of the country’s space agency ISRO over accelerating privatisation of the work of the agency with some private players being granted licenses.   

Sources said that the government’s top official asked the ISRO to issue a statement saying that it would remain the country’s leading space institution after its staff association raised concerns about plans to transfer certain activities to private and state-run companies.

The Centre moved as the opposition has been opposing to the Modi government’s plan to transfer sensitive and strategic technologies to the private sector.  The CPM has demanded an immediate halt to the alleged privatisation of the ISRO.

The opposition’s pushback came after a statement by the IN-SPACe chairperson Pawan Goenka who said that “eventually the ISRO will not make or manufacture any launch vehicles” and that the entire production would be entirely shifted public sector undertakings or private players.

Goenka’s statement resulted in a joint protest letter from nine ISRO employees associations.         

India is one of the world’s leading spacefaring nations.

The Indian Space Research Organisation has sent a spacecraft to Mars, landed near the moon’s south pole and developed its own launch vehicles. It is also preparing for the country’s first crewed spaceflight.

“ISRO will continue to remain India’s principal institution for advanced space research and technology development, national and strategic missions, space science and exploration, and critical and frontier space capabilities,” the agency said in a post on X on Sunday.

The post sought to address fears saying that the organisation would “neither be privatised nor will its importance be diminished”.

The statement followed a Sept. 4 staff association letter, reported by media and also reviewed by Reuters, in which some ISRO employees sought clarity from ISRO Chairman V. Narayanan over reports that manufacturing and operational responsibilities currently handled by the agency is transferred to companies.

Staff also sought clarity on recent statements about privatising some ISRO activities, saying there had been no formal communication from the Department of Space, which oversees the agency.

Prime Minister Narendra Modi’s government has sought to expand private-sector participation in India’s space industry since opening the sector to private companies in 2020. Industry has increasingly taken on rocket manufacturing and other activities previously dominated by ISRO.

A consortium led by state-run Hindustan Aeronautics and Larsen & Toubro is producing ISRO’s Polar Satellite Launch Vehicle, while the government has transferred technology for the Small Satellite Launch Vehicle to HAL as part of that push.

“ISRO’s role is by no means diminishing. It will remain the bedrock of Indian space sector,” Pawan Goenka was asked to clarify his earlier statement, sources said. Goenka said that it also helps in building private industry engagement in the space sector.

“The reforms since 2020 are about expanding India’s overall space ecosystem,” Goenka said.

ISRO chief Narayanan on Monday said the space agency remains a government organisation and dismissed concerns over its privatisation, saying it is working with private companies and startups to expand India’s space ecosystem.

Speaking to reporters after the inaugural ceremony of the ninth edition of the Bengaluru Space Expo (BSX) here, Narayanan said India’s space programme is about 64-65 years old, and that at present there are 56 space assets in the sky serving the common man of the country, but the need is huge numbers.

Recalling that since the space sector reforms were rolled out six years ago, he said that, as per that, “we are supposed to hand-hold the private sector, startup companies, and grow the space ecosystem.”

“In fact, whenever a PSLV or a GSLV is lifting off, almost 80 per cent budget is invested in Indian industries. A total of 450 industries are working for us,” he said.

On the concerns raised by the employee associations, Narayanan said, “So, surely, my colleagues, whatever they have, it is a genuine concern. It is our responsibility to clarify.”

He stressed that India’s growing space ambitions would require a significant increase in the number of launches.

“The country’s requirement is around 50 launch vehicles per year. We have to go ahead,” Narayanan said.

He clarified that ISRO is not privatised and remains a government organisation.

“We are working — it’s a government investment, and we are working there. But the only thing is, we now (have) so many activities. The space ecosystem in the country has to grow and the space economy has to grow,” he said.

Responding to a question about different voices within ISRO raising concerns, Narayanan said, “We will address the employees.” On the feasibility of targeting 50 launches a year, he recalled that when he joined ISRO 43 years ago, one launch used to take place once in three years.

“So many activities are going on. Probably one or two things are only known outside, but it is our responsibility to put everything in the ISRO side. Fifty launches per year is going to be a reality,” he said, adding that it would be accomplished by Indians in India,” he added.

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