New Delhi: A parliamentary standing committee has expressed serious concerns over the transfer of ISRO-developed technologies to private industries and new space startups in India at disproportionately low prices relative to their commercial potential. The committee observed that New Space India Limited (NSIL), the commercial arm of ISRO, under the Department of Space (DOS) has signed over 100 technology transfer agreements to date, covering 61 different technologies. Upon reviewing these agreements, the committee discovered that the technologies were licensed for nominal fees, as low as Rs 6,000 and in some cases, were even provided for free.
The report argues that such undervalued licensing rates allow private companies to generate significant profits, while the public originating entities, funded by taxpayer money, receive only a marginal share of the value created. Furthermore, the committee highlighted the absence of a credible mechanism to verify whether the benefits of these low-cost technology transfers are actually passed on to the intended target users. The Department of Space defended the low pricing for specific technologies such as the second generation Distress Alert Transmitter, citing their intended societal benefit for small-scale fishermen. However, the committee maintained that the licensing fees must appropriately reflect the true commercial value, uniqueness, and societal impact of the technologies developed through public funding.
Recommendations to rectify the situation
The report suggests some measures to rectify the problems, and has recommended that the Department of Space adopt a more competitive and market-aligned pricing framework. It specifically advises the establishment of clear guidelines for determining the technology transfer costs, and suggests that the standing committee constituted by IN-SPACe, the single-window clearing agency for all space activities from India, calculate all future fees in accordance with these newly formulated guidelines. Finally, to ensure transparency and accountability in the process, the committee recommends that all technology transfer agreements be subject to periodic third-party audits.