Govt looking at exit options for ISRO

The Department of Space on Tuesday said that it is looking at the best exit option for ISRO to come out of the contract with Bangalore-based Devas Multimedia Pvt Ltd. It expects to complete the process soon.

Dr K. Radhakrishnan, Secretary, Department of Space, said, “The process to annul the contract has been under way since 2009. We are studying various aspects of the deal, including legal aspects, before we cancel the agreement with Devas.” The Secretary said the preferred exit option will be the one which does not cause any damage or loss to the Government.

No financial loss

On whether the deal has resulted in any financial loss, he said, “There was no financial loss to the Government because no spectrum had been given to Devas Multimedia.”

The disclosure by the DoS came just a day after Business Line and The Hindu reported on an investigation by the Comptroller and Auditor-General on the deal between Antrix and Devas which was signed in 2005.

When asked as to why ISRO was taking so much time in cancelling the deal with Devas, Dr Radhakrishnan said that it was due to procedural delays.

Strategic change

“From 2003 to 2009, the country's requirements for S-Band had changed. The contract is not being terminated because of poor performance. It is because the nation's strategic requirements for S-Band have increased,” he said.

Asked whether action would be taken against those officials who decided on the contract, he said, “it is an internal process and necessary action will be taken against Antrix officials if any irregularities are found.”

He conceded that the Cabinet was not “explicitly” told about the contract and that Devas would be the major beneficiary of the satellite.

PMO was informed

Asked whether the Prime Minister knew about the issue, Dr Radhakrishnan said, “The Committee to review the contract was constituted in December 2009. The Space Commission then deliberated on the issue following which it conveyed its decision to terminate the contract to ISRO. Subsequently, the PMO was informed.”

Asked whether the Space Commission was aware of the contract before the review process started, Dr Radhakrishnan said that only the board of Antrix knew about it. “Antrix is the commercial arm of ISRO.

The board has members from DoS and ISRO and only board members would have been aware of it,” he said.

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