The Devas deal - the making of another spectrum scam

What makes the Antrix-Devas S-band contract so murky...

GN Bureau | February 10, 2011




1. Devas does not own either the spectrum, the two satellites or the user-terminal technology. It is only an agent for foreign multinationals. It paid Rs. 1,000 Crores, for two custom-built satellites but not a dime for the spectrum.

Most of the Devas employees, board directors and advisors are former Isro employees who provide insider information not technology.

2. This commissionam is masterminded by the three former scientific secretaries of Isro – M G Chandrasekhar, K R Sridharamurthy and A Bhaskaranaryana. The space agency is very chairman-centric, creating conditions for nepotism.

They misrepresented facts to the then secretary of the department of space (DoS), additional secretary and misled the space commission and the union cabinet . The fact that a very one-sided contract has been signed by Antrix with Devas was never told to the space commission or the union cabinet. In fact a copy of the contract was never given to either. The so-called approvals were obtained from both for the satellite GSAT-6 and more recently 6A without discosing that these satellites have been contracted out to Devas.

4. No declaration of interest was put out on the Antrix website requesting bids from other interested parties before signing the agreement.

5. Emerging requirements of S-band spectrum by Strategic Government organisations (50 MHz) and societal needs were ignored;

6. The agreement raises serious national security issues due to the liberty provided to the private party to co-opt any partner without clearance of Antrix

7. The agreement violates INSAT Co-ordination Committee (ICC) guidelines of ‘Non-exclusiveness’.

8. It violates government’s policy as contained in the Recommendations of TRAI dated 28 Aug.2007 that for any terrestrial transmission, except for 800,900,1800 MHz band, the spectrum allocation has to be done through an auction and,

9. the Antrix-Devas contract, contravenes the existing policy framework of the government as part of this spectrum was co-ordinated for strategic use and is not to be shared with commercial applications to a private party. Terrestrial transmission is not permitted in this part of S band as per TRAI regulation.

10. The DoS secretary is deliberately not proceeding on the directives of the commission for the past seven months issued vide minutes of the commission's meeting on July 2,2010 as pressures from former chairmen of Isro are overwhelming. Dr.Kasturirangan is worried about his clean image getting dented. Prof. U.R .Rao’s daughter works for Devas.

11. The deal between Antrix and Devas was considered to be similar to earlier INTELSAT contract but is not. This agreement allows Devas to sub-lease, assign or sell the capacity without any approvals of Antrix which would give rise to serious security concerns; violates INSAT Coordination Committee (ICC) guidelines of ‘Non-exclusiveness’ in leasing capacity , violates transparency, no technology neutrality, non-information of the agreement to the cabinet and the space commission, non-commercial viability for Antrix, terms of contract being biased against Antrix’s interest. (The fact of the contract already having been signed in January 2005 was not informed to the union cabinet while seeking clearance for financial sanction to build GSAT-6 satellite though the notes to the union cabinet were sent subsequently on Nov.17,2005) ; The total payment to be made by Devas to Antrix is not commensurate with the cost of the satellite and the normal profit projections of a commercial corporation. severe penalty clauses to be borne by Antrix for delayed delivery of the spacecraft.(agreement may be referred to verify charges)

12. DoT, ministry of law and justice have favoured cancellation of the contract.

13. The agreement was never dicommissionussed in TAG or ICC. as it was considered “Commercially Confidential.” agreement copy was denied to Hindu under RTI.

14. DoT/ministry of IT and communication vide their note dated 28.07.2010 further stated: “… that terrestrial component of the BSS frequencies should also be given similar treatment as in the case of 3G and BWA spectrum with regard to pricing, and, auction mechanism should be adopted for fair spectrum allocations”.

15. From observations above it is clear that the Antrix-Devas contract should have been terminated.

16. What happened between Jan.2005 and July 2010?

Devas was busy selling the capacity to foreign vendors, getting FIPB clearances, attempting trials without witnesses, waiting for European technology to mature which they could sell as their own indigenous technology. In short attempting bigger frauds and covering their tract as the satellites were getting ready.

17. Who wanted this spectrum?
All 4G vendors and LTE operators. They still want it.

18. Does Devas have a S-DMB license now?
No. Though the agreement is for delivery of S-DMB service, Devas does not have an operating license because the information and broadcasting ministry's clearance is also required and  Devas is relying on powers that be in Dlehi to get it the S-DMB license.

19. The S-band spectrum has been auctioned in the world since 2000. A report is enclosed. UK sold 60 MHZ for 22.5 billion GBP.

20. All India Radio (AIR) operates its services in this band and recently DD has plans to use this band for S-DMB which should take priority. Why are they not doing it then? Simply because there has been no meeting of the inter-ministerial group for the past 2 years. The government processes of checks and balances has been completely suspended.

21. Why did the present Isro chairman not blow the lid off the scam until the Hindu report damned the deal?

Comments

 

Other News

Govt, RBI announce major reforms to attract FPI

The finance ministry on Friday announced a series of measures aimed at enhancing the ease of investment for individual Persons Resident Outside India (PROIs) and Foreign Portfolio Investors (FPIs), and to attract stable long-term foreign capital flows.   Building on the recent in

Lessons in climate adaption from world’s largest inhabited river island

Majuli Island, perched between the Brahmaputra River to the south and east, the Subansiri River to the west, and a branch of the Brahmaputra to the north, has been severely affected by recurrent flooding and intense riverbank erosion. Despite its global importance in acquiring UNESCO tentative status for

Careless whispers and the impossible trinity

Time can never mend, the careless whispers of …    As the RBI marches ahead, for the upcoming monetary policy meeting this June, whispers from the corridors echo around several policy options to defend the rupee – by deploying forex reserves, raising in

Bullet Train Project: Third mountain tunnel breakthrough achieved

A major engineering milestone has been achieved in the Mumbai–Ahmedabad Bullet Train Project with the successful breakthrough of the third mountain tunnel (MT-07) at Ambesari village in Dahanu Taluka of Palghar district, Maharashtra.   With this achievement, three mountain

Supreme Court gets five new judges

Five new judges were appointed to the Supreme Court of India on Monday. "Vide Notifications of even number dated 01.06.2026, in exercise of the powers conferred by clause (2) of Article 124 of the Constitution of India, the Hon’ble President of India is pleased to appoint (i) Shri

Astonishing breadth and depth of ancient Indian knowledge systems

The Greatest Books of Ancient India: Incredible Ideas about Science, Music, Maths, Art and More By Dr. Pradeep Chakravarthy and Dr. R. Thiagarajan Hachette India, 208 pages, Rs 399  





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter