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A new & private race to the moon

India has created a Rs 1,000-crore venture capital fund to support space startups
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Risky: Even though competition breeds innovation and faster development of technology, it comes with a set of risks and dangers. REUTERS
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THE election of Donald Trump as the next US President is causing ripples in many sectors — ranging from climate change to immigration. The space sector was also added to the list when the President-elect nominated 41-year-old Jared Isaacman as the next administrator of the National Aeronautics and Space Administration (NASA).

Isaacman is not a space scientist, an engineer or a public administrator but an entrepreneur-businessman. His connection with the space sector is that he has flown to space twice as a space tourist; is a trained jet pilot; and holds a stake in SpaceX — the firm founded by Elon Musk. His nomination — subject to congressional confirmation — has, therefore, raised eyebrows in the space industry.

Musk and Isaacman are friends. The former has also been nominated to co-lead the Department of Government Efficiency. Apart from carrying out space missions for NASA, Musk’s business interests include launching space-based Internet service globally — using a constellation of satellites under a venture called Starlink. The company’s application for providing satellite-based Internet services in India is pending with the Central Government and its clearance is subject to security approval from the Ministry of Home Affairs. Musk and his partner Isaacman becoming part of the Trump administration is likely to impact NASA’s policies as well as the space sector globally over the next four years.

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The appointments come at a critical point for the American space agency, which is planning a return to the moon. NASA conquered the Cold War-era of space race, when it successfully landed humans on the lunar surface in 1969. Post the USSR breakup, it built the International Space Station (ISS) as an international collaborative effort. With changes in technologies connected with space travel and renewed interest in lunar and inter-planetary missions, NASA has embarked on the mission to return to the moon.

The first moon race was entirely led by state-funded efforts. However, in the second race, private companies are going to play a big role. After NASA shut its space shuttle programme, it funded private companies like SpaceX, Blue Origin (founded by Jeff Bezos) and Boeing to develop reliable space travel systems. The agency has been hiring services from SpaceX to ferry cargo and astronauts to the ISS. For its lunar mission too, NASA must depend on private companies.

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For NASA’s return to the moon after five decades, both SpaceX and Blue Origin are in the race to develop lunar landers. The two companies are being funded to simultaneously develop lunar landers by NASA. If one fails or is delayed, the other can deliver on time. The total value of the contract for Blue Moon Lander is $3.4 billion up to 2029, while that with SpaceX is valued at $2.89 billion. In addition, NASA has a massive budget and awards contracts worth billions of dollars to commercial space companies for a range of projects.

Isaacman at NASA’s helm and Musk being a part of the Trump administration appears to be a clear case of ‘conflict of interest.’ Isaacman — with a substantial financial stake in SpaceX —would preside over the high-stakes contracts to private companies, including SpaceX. This apart, he has been critical of NASA’s policy of parallel development of lunar landers.

Musk has also publicly made fun of his close competitor, Boeing, for its problems with the Starliner spaceship that ferried Sunita Williams to the ISS but developed a snag, delaying her safe return to earth. Isaacman has also criticised NASA’s Space Launch System project as a waste of public money. As the next head of NASA, he will have to take a call on several such issues.

The first race to the moon was a highlight of the Cold War rivalry between the two superpowers. They eventually saw the futility of such a race, given the inherent risks and high-capita costs involved and began cooperating for projects. The ISS is the prime example of such cooperation between Russia and America and several other nations.

NASA also decided to shift some of its key tasks such as space transportation to private companies. The agency is funding private companies to develop new space technologies, thereby reducing the risks involved. Commercial players have benefited from NASA’s technical skills by hiring its former experienced scientists, engineers and astronauts.

Although, the second race to the moon — NASA’s Artemis — is a state initiative, it will be largely driven by commercial space providers. This marks a global shift in the approach to space. The flight of an Indian astronaut to the ISS slated for 2025 is being projected as a by-product of Indo-US cooperation in space, but in effect, it is being executed through commercial operators and is paid for.

We are going to witness such a tilt towards the private sector in other areas of space activity as well. The Indian Space Research Organisation (ISRO) has also started encouraging private players to develop satellites and rockets and launch them. The government has created a Rs 1,000-crore venture capital fund to support space startups. Private engineering firms are already major suppliers to the space agency. The head of IN-SPACe — the agency that coordinates the entry of private companies in the space sector — also comes from the private sector.

Space exploration is not just about human curiosity and seeking scientific knowledge. It is as much about diplomacy, geopolitics, national pride and commercial interests. It is about providing commercial and strategic services such as location, search and rescue and is an aid to military campaigns.

In the long-term, it could lead to colonising the moon and exploration of resources on planets. Should this activity be pursued in a global cooperative and collaborative manner or left for competition among private companies and billionaires? Even though competition breeds innovation and faster development of technology, it comes with a set of risks and dangers.

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