New Delhi, February 12
India’s top body on space policies today decided to annul the controversial S-band Spectrum deal between ISRO’s commercial arm Antrix Corporation and Bangalore-based private firm Devas Multimedia Private Limited. The final decision, however, would be taken by the Cabinet Committee on Security by next week.

Also, the Space Commission, at a meeting here, set in motion the process for having a new chairman-cum-managing director for Antrix. And for the purpose, the commission has formed a special committee -- to scout for a new full-time chairman.

After the meeting that lasted for more than two hours, the Secretary of the Department of Space, K Radhakrishnan, said that the contract with Devas needed to be annulled given the requirement of the S-band Spectrum for strategic purposes.

“In view of the priority to nation's strategic interests, the deal between Devas and Antrix will be annulled,” he said.

The note of termination of the deal, he said, had been sent to the Centre and that the Cabinet Committee on Security was expected to look into the proposal and take the final call by next week.

Notably, Antrix stands to pay penalties on two counts if the deal is cancelled: on delay in delivery of the satellite; annual payment for the life of the satellite.

The Antrix-Devas deal had left the government embarrassed, especially after it came to light that the contract was not scrapped even more than a year after different departments had detected lapses in it. The controversy is especially worrying for the government as ISRO reports directly to the PMO. The deal is being examined by a two-member committee, comprising former Cabinet Secretary BK Chaturvedi and Space Commission member Roddam Narasimha, which is expected to submit its report by March 9.

Radhakrishnan said the decision to have a CMD for Antrix was taken considering its business expansion and a newly conferred 'mini-ratna' status. However, he maintained that there was no complete restructuring of ISRO's commercial arm.

Under the present arrangement, the Secretary of the Department of Space also heads ISRO and Antrix. Antrix would continue to have a technocrat as its head but for the first time, since its creation in 1992, the person would not be the ISRO chief.

Antrix had signed the contract in January 2005 and got the sanction of the Space Commission and the Union Cabinet for the two satellites without informing them that bulk capacity would be leased to Devas Multimedia. Bundled into the deal was 70 MHz of S-band Spectrum, which was grossly under-priced.

ISRO ordered a review in December 2009 and subsequently, the Space Commission recommended its annulment on July 2, 2010.

(With PTI inputs)