The Hindu Business Line : ISRO in sight of foreign satellite contract

YEARS after it started building its own communications satellites, the Indian Space Resource Organisation (ISRO) may be on the verge of breaching the tough international satellite market.

The national space agency's export arm, Antrix Corporation, could be in sight of a couple of major European commercial orders, albeit in a joint pitch with its European marketing ally, EADS Astrium, Mr G. Madhavan Nair, ISRO Chairman and Secretary, Department of Space, told Business Line.

Any of the contracts for which the two have pitched, when it fructifies in the coming months, will involve building the satellite body using the manpower and support systems at ISRO's Bangalore centre. The electronic brain or payload will be from EADS Astrium, the France-based satellite major under the 1,030-million-euro European Aeronautic Defence and Space Co NV.

"We have submitted two proposals and are awaiting responses" from potential European customers, Mr Nair said. The marketing responsibility rests with EADS Astrium, which will also bring the payload, as it has an edge in both areas.

ISRO may also get a double-whammy chance to commercially launch one or both of them depending on the size of the satellite and the requirement of the buyer. "We are looking at both options," he said.

Ever since they decided to team up in June last year, Antrix and EADS Astrium have been jointly bidding for some of the two-tonne and three-tonne international satellite contracts. The MoU has progressed to good discussions and consensus on `packages' or distribution of roles.

Cost advantage: An ISRO-built satellite will also have the cost advantage: the Insats cost Rs 200-300 crore each and are considered well below Western price tags.

Mr Nair said ISRO was not expecting major commercial gains in the initial phase but it would get a small margin in the normal industrial realm of 15-20 per cent over the cost as EADS was bringing in the expensive part, the payload.

"This opportunity will serve more for us to get into the market," Mr Nair said. "The number of satellite manufacturers is coming down. Boeing (Satellite Systems) has closed down its small satellite window totally and moved up higher (to 4 tonnes). Some others are in the mode of merger. If we can capture the international market and establish ourselves, we can expect a much better share in the future."

Opportunities in developing nations: ISRO also sees opportunities to make satellites totally on its own for the developing world. "We are looking at giving total solutions to developing countries for their communication needs - build a satellite, launch it and give it to them in orbit - on turnkey basis."

Its satellite technology and capability has really matured, Mr Nair said. However, on the launch front, it can as yet fly two-tonne `birds' on its GSLV rocket. It expects to reach 3-4 tonne lifting capability in 2008 with its new generation GSLV Mk3 launcher.

Since 1992, ISRO has so far built at least a dozen Insat communications satellites, mostly weighing two tonnes and has graduated in recent years to three tonne ones such as Insat 3E and the latest 4A. It has also bid for global satellite contracts, but against the US and European majors.