India approves its first Maxar-like private satellite data project worth $135mn

Mint

2 days ago

A consortium of four startups, led by Bengaluru-based Pixxel, has won a mandate to create and operate India's first privately-built satellite imaging system. Approved by the country's space regulator on Tuesday, the project worth $135 million ( ₹ 1,200 crore) over five years, will see the birth of private Indian space firms that sell earth observation data at scale to commercial clients.
The move mimics an established American model of satellite operation, where firms such as Maxar Technologies sell high-resolution satellite images to any paying customer, for a fee. While Maxar's data ran into a controversy when reports highlighted its involvement in the planning of the Pahalgam terror attack in Jammu & Kashmir on 22 April, industry stakeholders have consistently flagged the importance of the technology in modern-day industries—such as civic planning, forestry, agriculture, disaster management, maritime exploration and more.
In the mission, Pixxel, along with fellow startups Dhruva, SatSure and Piersight, will develop a constellation of 12 satellites with 'panchromatic, multispectral, hyperspectral, and microwave SAR sensors'—a statement by the Indian National Space Promotion and Authorization Centre (In-Space) said. While the description does not specify a resolution of data, it refers to images that can clearly convey close-range information such as depth and textures.
Pawan Goenka, chairman of In-Space, said in the statement that the project 'demonstrates the capability and confidence of Indian companies to lead large-scale, technologically advanced, and commercially viable space missions that serve both national and global markets.' However, he could not be reached for a comment on the government's role in the project.
The constellation project, once completed, will become the first private imaging system in India. In-Space did not reveal the breakdown of the final bids till press time.
In June, In-Space kicked up a row for awarding a $60-million contract to privatize the Indian Space Research Organisation (Isro)'s small satellite launch vehicle to state-run Hindustan Aeronautics Ltd (HAL). The Centre holds over 70% stake in HAL, leaving analysts wondering whether the sale of the government-built rocket truly qualified as privatization. Industry stakeholders had also raised concerns around stifling of the private sector, at a time when HAL struggled to deliver on previous Isro and Air Force contracts.
Tuesday's announcements appear to have made amends by awarding a large commercial contract to private space firms. While the government has thrown open the space sector to private players, various industry veterans, including former Isro chief S. Somanath, have raised concerns over the Centre not being the anchor customer for India's nascent space industry. They fear that without the government's regular and guaranteed orders, the startups may not be able to grow.
'There is no clear statement of intent that for the new private satellite constellation, the government will be an anchor customer. But, this is a sign of intent that India is ready to offer contracts exceeding a few hundred thousand dollars to private companies—which in turn would help the industry grow further,' a senior industry executive said, requesting anonymity, since he was a part of the bidding process for this very contract.
Earth observation satellites, Mint reported on 13 July, is giving an increasing fillip to India's space startups in terms of revenue and client base—as governments as well as private firms see a more geopolitically divided world. However, while the likes of Digantara applied and won a ministry of defence surveillance satellite contract, Pixxel itself is a part of an increasing number of companies setting up shop in the US for more lucrative American space contracts.
Other finalists of the imaging satellite project included public-sector firm Bharat Electronics, and Bengaluru-based startup GalaxEye—which is also building its own surveillance satellite to offer as a product or service around the world.