https://followupstories.com/money/chandrayaan-3-and-quest-for-an-indian-space-legislation-for-private-players-in-space/

   - <https://followupstories.com/write-for-us/>Mone
   <https://followupstories.com/money/>Y / *August 29, 2023*

   Eight Billion Dollar Market Across The Moon, Waiting For A Draft Law And
   Private Companies
   by FUS Desk <https://followupstories.com/author/admin-2/>

Two incidents happened before and after the launch of Chandrayaan-3. Prime
Minister Narendra Modi on his visit to the US last month signed the Artemis
Treaty and just two days after Chandrayaan liftoff, private launch
companies were exempted from paying GST on launching satellites from their
launch vehicles or rockets into space. Is there a plan to set up a space
market behind the celebration on Chandrayaan? What are 150 space start-ups
waiting for? A look at India's first national space law pending for six
years
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*In the context of the success of Indian space agency ISRO's latest mission
Chandrayaan-3, it needs to be reminded that the nature of India's space
activity is avowedly linked to public purpose. ISRO's focus remains on
three main areas: tele-education, tele-medicine and the Village Resource
Center programme. The rationale behind this has been that India's
engagement with outer space should be linked to its developmental needs and
should be seen in the context of social problems such as unemployment,
hunger, malnutrition and lack of sanitation.*

Keeping ISRO's operations aligned with the "developmental needs of the
country" is possible at least as long as India's space program is public
and controlled by the government. The space policies and laws adopted by
some countries in the recent past and their positions on the commercial use
of natural resources in outer space are of great concern to the stated
objectives of India's space programme.

Under pressure from the growing role of the private sector in space, India
also began efforts to enact a national space law six years ago. The bill,
titled the Draft Space Activities Bill, 2017, is yet to be introduced in
Parliament, but the Cabinet Committee on Security approved the Indian space
policy last April. It is believed that after the approval of the policy,
now the next number is of the law.

*private companies in space*

*The draft Space Activities Bill has so far not found any specific mention
in the public discourse on Chandrayaan, but it needs to be noted that at
least 150 private sector space agencies have already registered with the
government for space exploration And private industry is raising capital
very fast in this direction.*

Just two days after the launch of Chandrayaan-3, the GST Council made a
surprise announcement by exempting private launch service companies from
paying GST on launching satellites into space from their launch vehicles or
rockets. On this announcement, the happiness of more than 150 space
start-up companies present across the country knew no bounds. Earlier, this
GST exemption was available only to New Space India Limited, which is the
commercial arm of ISRO. Its extension to private companies after the launch
of Chandrayaan gives a glimpse of future space missions.

India's space sector was formally opened to private players three years
ago. In the first half of 2023, this sector has raised funding of $ 62
million, which is 60 percent more than the funding raised in the same
period last year. According to global consultancy firm Arthur D. Little,
the current $8 billion space market in India has grown at 4 per cent
year-on-year over the past few years as against a global growth rate of 2
per cent.

The Draft Space Activities Bill, 2017 has a direct link with this $8
billion market, which definitely indicates a bigger role for the private
sector in space in the days to come.

In the case of India, however, the role of the private sector has generally
been minimal due to two factors. First, India's economic model in the first
few years of independence ensured that the private sector would act as an
'extension' of the state, and second, the stated objective of India's space
program was a developmental need. Both these reasons may not be as
effective in the coming days after the National Space Law is enacted.

*current regulations in space*

*India's space policy is mainly seen with satellite communication policy
and remote sensing data policy. The Remote Sensing Data Policy (2011)
mandates a license or permission from the government to operate a
remote-sensing satellite from India or receive remote-sensing data or
distribute it within India. On the other hand, the Satellite Communications
Policy (approved in 1997) aims to create a thriving satellite industry
which also aims to attract private sector and foreign investment.*

In addition, certain policy measures and laws have an impact (directly or
indirectly) on various aspects of India's space missions. For example,
about 74 laws (excluding state laws) may directly/indirectly or
generally/specifically affect space activities, especially the activities
of private institutions. It is clear that many laws will also need to be
updated so as to make these laws relevant to activities related to outer
space.

The existence of so many laws, however, cannot replace the effectiveness of
a comprehensive national space law, as the General Assembly of the United
Nations in one of its resolutions, Resolution Application of the Launching
State Concept, has recommended that countries conducting space activities
should 'consider' implementing national laws authorizing and monitoring
activities of non-governmental organizations within their jurisdiction.

*space law draft*

*At present, India does not have any specific and dedicated law relating to
the exploration and use of outer space. Instead, a number of pre-existing
laws govern space-related activities. As part of the process of enacting a
national space law, the Draft Space Activities Bill, 2017 was published
inviting comments from relevant sections of civil society. According to the
draft bill, the regulation of activities related to space comes under the
jurisdiction of the central government.*

The subject matter of any space law generally includes scope of
enforcement, authority, supervision, registration, liability, protection
and transfer of ownership. Important areas covered in the draft bill
include rights for commercial space activity, rules regarding license to
engage in commercial space activity, registration of articles related to
space, liability for damage caused by commercial space activity, protection
of intellectual property rights. security and delegation of powers.

The draft bill also seeks to prevent unauthorized activity in space. For
this reason, Chapter III para 6.1 clearly states that 'no person shall
carry on any commercial space activity other than the activity covered by
the license referred to in sub-section (1) of section 7'. Similarly, a
license to engage in commercial activity in outer space can be granted only
if it is consistent with India's international obligations (7.2.b). The
Central Government reserves the right to inspect the space activity of the
Licensee as well as the materials used for such activity (8.2.a).

In addition, the central government also has the right to oversee any space
activity in which India is a launching state (3.K). Since international
space law makes countries liable for damage, even if caused by private
entities, the draft Bill provides that the licensee shall indemnify the
central government 'for any damage or loss caused by any commercial space
activity'. shall indemnify any claim brought against the Government in
respect of or in respect of the object of the space covered under the
license' (12.1).

The draft Space Activities Bill highlights that it addresses important
areas related to the exploration and uses of outer space. For example, it
regulates the activities of private players, provides rules for obtaining
licenses for engaging in commercial space activity and re-registration of
space objects, and for damages by way of compensation to the central
government. related to liability.

Despite this, issues relating to the nature of ownership rights in space
have found no representation in the draft bill.

*Ownership in Space **?*

*Most of the world's current space laws were formulated in response to
conditions that existed during the Cold War era. Changing circumstances and
new realities (such as the commercialization of outer space and the
increased role of the private sector) challenge traditional notions of
outer space law. The potential for commercial use of outer space has given
rise to a debate concerning the Outer Space Treaty.*

In this context, the rules regarding ownership rights in outer
space—especially in the case of natural resources contained in celestial
bodies—have become increasingly important. Does the national or private
sector have the right to use natural resources in celestial bodies without
permission? Can such resources be used for commercial gain without claiming
full ownership? Is it necessary to establish an international regulatory
regime for the use of natural resources? These are some such important
questions.

These are the questions countries will have to answer in the near future
when national and private missions to celestial bodies become possible. That
is why, it is very important to have a broad knowledge of the laws that
exist in the world related to ownership rights in outer space.

*outer space treaty*

The Outer Space Treaty recognizes outer space (including celestial bodies)
as the 'province of all mankind'. In addition, the treaty states that the
exploration and use of outer space 'shall be carried out for the benefit
and interests of all countries, regardless of their level of economic or
scientific development'. Furthermore, outer space and the celestial bodies
therein cannot be subject to claims of sovereignty through use or
occupation.

*Moon Agreement and its Limitations*

The Moon Agreement, an agreement governing the activities of countries on
the Moon and other celestial bodies in terms of the use of natural
resources contained in celestial bodies, came into force in 1984. The Moon
Agreement provides detailed rules regarding their use until a specific
regulation is made for astronomical objects such as the Moon, as well as
other celestial objects in the Solar System.

The Moon Agreement declares that the Moon and its resources are the 'Common
Heritage of Mankind' (CHM). The area declared as CHM has special
features. These
include restrictions on acquisition or claims of sovereignty, reserving the
area for peaceful use only, protecting the environment, governing the area
through joint management arrangements, and sharing the benefits of the area
with an emphasis on the special needs of developing countries. sharing
equally.

In this context, the slogan "Moon is Indian" or "Chand Bharat ka" used
during the current Chandrayaan-3 seems problematic.

The Moon Agreement states that activities related to the exploitation of
resources on the Moon will be carried out under the supervision of an
international regulatory body established by the countries involved in the
treaty. In addition, the said arrangement is to ensure that the benefits
derived from the exploitation of the resource are shared equitably, while
taking into account the interests and needs of developing countries (as
well as those contributing directly or indirectly to the exploration of the
Moon). 'special consideration' is given to the efforts of the donor
countries.

So far only 18 countries have ratified the Moon Agreement. However, the
principles contained in the agreement have some academic support. Important
space-faring nations are not included in this list. Along with other
space-faring nations such as France, India has signed the Moon Agreement,
but has not yet ratified it.

The limited acceptability of the Moon Agreement means that the use of
natural resources in outer space is governed by the Outer Space Treaty. The
Outer Space Treaty explicitly outlaws any state's claim to use it without
permission, but it does not discuss in detail the regulatory mechanisms
relating to the use of natural resources.

Based on this, several approaches are possible related to the use of
natural resources. The issue has regained international attention as
commercial exploitation of outer space, especially by private sector
institutions, has become possible. Aspects such as satellite manufacturing,
providing launch facilities, space debris removal, commercial remote
sensing, communications and broadcasting, and solar energy may be of
significant commercial value in the near future.

*US space policy*

US space policy interprets international law relating to outer space as the
right of all nations to freely move and conduct activities in space without
interference. In addition, it also includes provisions to protect America's
space assets.

America Also passed the Commercial Space Launch Competitiveness Act. The
law facilitates the commercial exploitation of outer space by US citizens
and is based on the distinction between celestial bodies and the resources
they contain, as described above. The US has also established the US Space
Force, which will serve as a new branch of the armed forces to prevent
aggression in outer space and protect its space assets.

*Other Space Laws and Policies*

The domestic policies of Luxembourg and the United Arab Emirates (UAE) are
also noteworthy. Luxembourg has recently stated that it will protect its
commercial interests in outer space, including asteroid mining. Its law
clearly states that space resources are proprietary. Luxembourg claims to
be the first European country (and the second worldwide after the US) to
secure property rights relating to resources in outer space.

The UAE aspires to be an important country in space exploration. To this
end, the UAE Space Agency will partner with other relevant entities towards
the 'exploration, mining, extraction and use of resources in space'.

*treaties of artemis*

*The Principles for Cooperation in the Civil Exploration and Use of the **Moon,
Mars, Comets, and Asteroids for Peaceful Purposes* (the Artemis Treaty), is
a US initiative that seeks to protect the Moon, Mars, asteroids, and comets
(including their subsurfaces and orbits) regulates the activities carried
out on celestial bodies. The agreement is signed by the national space
agencies on behalf of their countries and regulates the space related
activities of their countries. America, England, United Arab Emirates,
Luxembourg, Australia, Canada , Japan and Italy are its founding members.

India has recently signed the Artemis Treaty. A definite stand has been
taken in the Treaties of Artemis with regard to the question of ownership
rights in outer space. Paragraph 2 of section 10 of the Artemis Treaties
states:

The signatories confirm that the extraction of space resources does not
inherently fall within the right of national use without permission under
Article II of the Outer Space Treaty.

Thus the Treaties of Artemis differentiate between celestial bodies and the
resources they contain. Natural resources can be used without violating the
principle of no use without permission. The Artemis treaties confirm that
the principles contained therein are consistent with those of the Outer
Space Treaty. The draft Convention has therefore adopted a certain
interpretation relating to Articles I and II of the Outer Space Treaty,
which are relevant in the context of ownership rights in outer space.

*India's Draft Space Bill*

Various aspects of the Draft Space Bill 2017 in India have been discussed
in various forums. In the specific case of rights in outer space, it is
worth mentioning the 'Draft Space Activities (Regulation) Bill, 2020 -
Recommended Bill' published by Takshashila Institute.

The entire focus of the recommended Bill is on the commercial exploitation
of outer space. In terms of ownership rights in outer space, the
recommended Bill clearly states that natural resources in outer space must
be owned as they are (2.13 defines existing resources of space). However,
the recommended Bill does not elaborate on the exact process for acquiring
ownership. Instead, it says that ownership 'shall be subject to such
procedures and conditions as may be prescribed' (section 46).

The space policy document, published by the Takshashila Institute, refers
to recent developments related to the ownership of space resources (such as
legislation passed by the US) and says that India should be aware of such
developments and guide private institutions with suitable laws Needed

Therefore, think tanks in India as well as other relevant institutions are
concerned about the nature of ownership rights in outer space. Considering
the fact that recent legislation and policies relating to the exploration
of outer space have taken a definite position relating to the commercial
use of resources in outer space, it is surprising that the Draft Space
Activities Bill is silent on the issue.

*Struggle in Space?*

*The implications of India's failure to resolve the question of ownership
rights in outer space will not be confined to the domestic sphere. Instead,
this failure will have wider global implications, including the development
of international law related to the uses of outer space, which may impact
developing countries that currently do not have the technical expertise
required to commercially use outer space. .*

The first result could be that if most of the developed states start
commercial use of outer space through Artemis treaties, the result would be
the creation of an international law that is favorable only to the
countries that initiate the commercial use of outer space. will be.

Second, the traditional position in international law is that sovereignty
claims arise from effective control, although current limitations of
technology make such claims largely impossible. As technology develops and
human settlements are established on celestial bodies in the near future,
the need for effective control will only be partially met.

Third, the exploitation of resources from outer space costs enormous
amounts of monetary and technological resources. It is therefore important
to ensure that developing countries that acquire the capability of space
travel in the future are not deprived of the benefits of the exploration
and use of outer space.

Conducting space activities in a manner that deprives most developing
countries of their share of natural resources in outer space, which are
already scarce, would be a violation of the Outer Space Treaty.

Ultimately, what is gained from a fragmented system of property rights in
outer space will become a problem when multiple entities capable of space
travel technology simultaneously launch campaigns to exploit the scarce
natural resources in outer space. A 'common well' approach to shared global
resources is practical only when the number of institutions involved is
limited. Once the number of institutions multiply, there is bound to be a
struggle in terms of access to resources. Apart from this, it will also
have an adverse effect on the environment of space.

*Sources and References*

   1.
      1. https://journals.sagepub.com/doi/10.1177/09749284211047709
      2. Treaty on the Principles Governing the Activities of States in the
      Exploration and Uses of Outer Space, Including the Moon and
Other Celestial
      Bodies. (1967), 610 UNTS 205 (enforced October 10, 1967)
   2. https://www.unoosa.org/
   oosa/en/ourwork/spacelaw/treaties/introregistration-convention.html
   3.
   
https://www.unoosa.org/oosa/en/ourwork/spacelaw/treaties/introrescueagreement.html
   4. https://www.unoosa.org/oosa/en/ourwork/spacelaw/
   treaties/introrescueagreement.html
   5.
   
https://www.unoosa.org/oosa/en/ourwork/spacelaw/treaties/intromoon-agreement.html

   6. चंद्रमा और अन्य खगोलीय पिंडों पर राज्यों की गतिविधियों को नियंत्रित
   करने वाला समझौता (1979)
   7. https://www.nasa.gov/sites/default/files/national_space_policy_6-28-
   10.pdf
   8. https://www.govinfo.gov/content/pkg/BILLS-114hr2262enr/
   pdf/BILLS-114hr2262enr.pdf
   9. https://space-agency.
   public.lu/en/agency/legal-framework/law_space_resources_english_translation.
   html
   10. https://
   space-agency.public.lu/en/space-resources/commercial-use-space-resources.html
   11. https://space-agency.public.lu/en/spaceresources.html
   12. https://space.gov.ae/
   Documents/PublicationPDFFiles/UAE_National_Space_Policy_English.pdf
   13.
   
https://www.nasa.gov/specials/artemisaccords/img/Artemis-Accords-signed-13Oct2020.pdf

   14. https://www.isro.gov.in/ indias-space-policy-0
   15.
   
https://www.isro.gov.in/sites/default/files/article-files/indias-spacepolicy-0/satcom-policy.pdf

   16. http://www.unoosa.org/pdf/gares/ARES_59_115E.pdf
   17.
   
https://www.isro.gov.in/update/21-nov-2017/seekingcomments-draft-space-activities-bill-2017-stake-holders-public-regarding
   18. https://takshashila.org.in/
   
wp-content/uploads/2020/05/Recommended_Draft_Space_Activities_Regulation_Bill.
   pdf
   19. https://takshashila.org.in <https://takshashila.org.in/about/>/
   *about*/

Cahndrayaan <https://followupstories.com/tag/cahndrayaan/>, Draft Space
Activities Bill 2017
<https://followupstories.com/tag/draft-space-activities-bill-2017/>, ISRO
<https://followupstories.com/tag/isro/>, Moon
<https://followupstories.com/tag/moon/>, Outer Space
<https://followupstories.com/tag/outer-space/>, Property Rights
<https://followupstories.com/tag/property-rights/>
<https://followupstories.com/author/admin-2/>
Written By
FUS Desk <https://followupstories.com/author/admin-2/>
<https://twitter.com/thumbsuckers19>
<https://www.facebook.com/followupstories/>

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