Economic Prudence in India’s Space Sector: Learning from GSAT-18

Relevance: GS2,SEC-3

Introduction
India’s space sector, known for cost-effective missions like Mangalyaan and Chandrayaan, has often been praised globally. However, with increasing scale and public investment, ensuring economic prudence has become a necessity. The recent concerns raised over the underutilisation of transponders on GSAT-18 highlight the importance of efficient planning, optimal asset usage, and fiscal responsibility.

Case of GSAT-18: A Wake-Up Call
Launched in 2016, GSAT-18 is a communication satellite equipped with 48 transponders. However, 6 of its extended C-band transponders have remained idle and are expected to remain unused until 2027. This is because another satellite, GSAT-14, carrying overlapping transponders, will remain operational until September 2027.

The Public Accounts Committee (PAC), in its report tabled in Parliament, raised critical questions:

  • Why were the overlapping transponders planned without clarity on mission sequencing?
  • Why should expensive resources remain idle for over a decade, leading to revenue loss?

Key Concerns Raised by PAC

  • Idle Asset Usage: The underutilised transponders on GSAT-18 for 11 years represent lost opportunity and avoidable cost.
  • Revenue Loss: Not using the transponders has led to an estimated ₹117 crore in lost revenue.
  • Cost Duplication: Launch of GSAT-14 with overlapping transponders cost ₹110 crore just for six transponders.
  • Mission Planning Deficiency: Multiple missions with similar capabilities launched without adequate scheduling coordination.
  • Call for Accountability: The PAC called for more transparency in assessing configuration, frequency planning, and cost-effective redundancy mechanisms.

Department of Space’s Response
The space department defended the delay by citing:

  • GSAT-14’s role in GSLV’s developmental flight.
  • Need for redundancy to protect against in-orbit failure.
  • Common subsystems in satellites reducing incremental cost.
  • Concerns over loss of spectrum and service continuity.

Way Forward: Ensuring Economic Prudence To enhance fiscal efficiency in the space sector, the following steps are necessary:

  • Better Inter-satellite Coordination: Avoid duplication of services and optimise mission scheduling.
  • Transparent Cost-Benefit Analysis: Include opportunity cost and future redundancy in budget decisions.
  • Public Audit and Accountability: Strengthen oversight through institutions like CAG and PAC.
  • Lifecycle Planning: Every satellite project must factor in technological obsolescence, redundancy periods, and mission overlaps.
  • Balancing Redundancy with Economy: Strategic reserves should not come at the cost of prolonged idle assets.

Conclusion
India’s space sector must evolve beyond mission success to include efficient and economically prudent utilisation of public funds. Learning from GSAT-18, the focus must now shift to building not only successful but also sustainable and fiscally responsible space missions.