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The Indian National Space Promotion and Authorisation Centre (IN-SPACe) has approached the department of telecommunications (DoT) to reduce spectrum price for spacetech startups engaged in earth observation satellite operations, official sources said.

These startups use S (2-4 GHz) and X (8-12 GHz) frequency bands for remote sensing, improving image resolution and data reception. Though the spectrum is allocated on an administrative basis, the current pricing for the band is around Rs 70,000 per MHz per annum, resulting in an outgo of close to Rs 100 crore for these startups in a year if they use 1 GHz bandwidth, say officials.

Startups like GalaxEye, Pixxel, Dhruva Space, Skyroot are operating in this space for various applications from earth observation to space engineering solutions. Many new startups are entering the segment and are looking to launch earth observation satellites, therefore, there is a requirement to not burden them with higher spectrum costs, especially when they have limited funds, an official said.

Earth observation satellite operation involves managing and using satellites specifically designed to observe Earth from space. These saellites capture images and data about the planet’s surface, atmosphere and oceans, providing critical information for a range of applications.

Meanwhile, DoT has formed a committee to evaluate the possibilities of reduction in spectrum pricing, officials said, adding that the startups use a fraction of the band which is shareable, and a decision on the same will be taken soon.

In response to FE’s query on the subject, IN-SPACe said “as the matter is still under discussion, IN-SPACe cannot comment on this as yet”.

Currently, there are 250 startups operating across various segments in the space economy. According to IN-SPACe data, in the last 2-2.5 years, a total of $300 million investments have gone into these startups.

AK Bhatt, director general of Indian Space Association (ISpA), said, “spectrum costs need to be lower for startups as well as the satcom industry and must be based on the adjusted gross revenue and not upfront”. ISpA counts various startups in the spacetech domain as its members.

According to Bhatt, the Centre should also consider incentives like tax holidays, lower GST, PLI and reduction in import duty for the startups.

The government recently launched a Rs 1,000-crore venture capital (VC) fund focused on startups in the space sector.

At present, the Indian space economy is valued at approximately $8.4 billion, constituting a 2% share of the global space market. The government is looking to scale the space economy to $44 billion by 2033, including $11 billion in exports amounting to 7-8% of the global share. Financial Express