Q.188: ANTRIX-DEVAS DEAL

Will the Minister of SPACE be pleased to state:-

(a) Whether the Indian Space Research Organisation’s (ISRO) commercial arm Antrix Corp, had entered into an agreement with Devas Multimedia Pvt. Ltd. In the year 2005;

(b) If so, the details thereof;

© Whether the Government has constituted any Committee in this regard;

(d) If so, the reasons _herefore along with the findings of the Committee;

(e) Whether the Government is considering to annul the said agreement;

(f) If so, the reasons _herefore;

(g) the estimated loss of revenue suffered, if any, by the exchequer in this regard; and

(h) the steps taken/proposed to be taken by the Government against the officials responsible and the further action taken in the matter?
ANSWER: MINISTER OF STATE IN THE MINISTRIES OF PARLIAMENTARY AFFAIRS, PERSONNEL, PUBLIC GRIEVANCES & PENSIONS AND IN PRIME MINISTER’S OFFICE (SHRI V. NARAYANASAMY):

(a), (b), (c), (d),(e), (f), (g) & (h) A statement is laid on the Table of the House

STATEMENT LAID ON THE TABLE OF THE LOK SABHA IN REPLY TO (a) TO (h) OF STARRED QUESTION NO. 188 REGARDING `ANTRIX-DEVAS DEAL` ASKED BY SHRI RAVINDRA KUMAR PANDEY AND SHRI TATHAGATA SATPATHY FOR ANSWER ON WEDNESDAY, MARCH 09, 2011.

(a) & (b) Yes Sir.

Consequent to a Memorandum of Understanding signed in July 2003 between M/s Antrix Corporation Limited and M/s Forge Advisors of USA and the subsequent discussions, Antrix had entered into an agreement with M/s. DEVAS Multimedia Private Limited on 28th January 2005, for leasing part of the space segment capacity in S-band on two geostationary satellites. This agreement together with the option exercised by DEVAS in June, 2007 provided for leasing of 90% of the space segment capacity by ANTRIX to DEVAS on two satellites for 12 years. The objective of the Agreement was to enable Satellite-based Digital Multimedia services in the country.

(c) & (d) Yes, Sir. On receipt of the complaints on the implementation of the Agreement received in November 2009, Department of Space set up a Committee on December 8, 2009 chaired by Dr. B.N. Suresh, a former Member for Space Commission. This Committee was mandated to review and examine the legal, commercial, procedural and technical aspects of the Antrix-Devas Agreement that was considered by the Space Commission in July 2010 before directing Department of Space to take up action to annul the Antrix-Devas Agreement.

Subsequently, on February 10, 2011, the Government has constituted a High Powered Review Committee to review the technical, commercial, procedural and financial aspects of the agreement between ANTRIX and M/s Devas Multimedia Pvt., Ltd, to suggest corrective measures and to fix responsibility for lapses, if any. The Committee will be submitting its report very shortly.

(e) & (f) Yes, Sir. Taking note of the fact that Government policies with regard to allocation of spectrum have undergone a change in the last few years and the increased demand for national needs, including for the needs of defence, para-military forces, railways and other public utility services as well as for societal needs, and having regard to the needs of the country’s strategic requirements, Government directed Antrix to annul the Antrix-Devas agreement. Accordingly, Antrix has sent the Agreement termination notice to Devas on 25.2.2011.

(g) There is no loss of revenue to the exchequer as no spectrum has been given either to Antrix or to Devas.

(h) Steps to be taken by the Government will be decided after receipt of the recommendations of the High Powered Committee.

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