The steep growth in the Satellite-based communication services as well as newly emerging services in this area require substantial private sector participation. This is consistent with the liberalisation in telecom sector as well as the global trends in this area.

Based on the overall frame-work for the satellite communications policy approved by the Union Cabinet in June 1997, the detailed procedures for implementation have been worked out with the involvement of the concerned Ministries/Departments. The norms, guidelines and procedures fall under three categories, namely,

Establishment and Operation of Indian Satellites:
Indian registered companies with a foreign investment not exceeding 74% will be allowed to establish and operate satellite systems. Those who have got the operating licence for specific services from respective Ministries / Departments are eligible to apply. Applications will be processed for approval by an inter-Ministerial Committee chaired by DOS. The WPC Wing of the Ministry of Communications will represent the orbit-spectrum requirements of the private Indian satellites in international fora.

Usage of INSAT Capacity by non-governmental agencies:
INSAT capacity will continue to be allocated to Department of Telecommunications, Doordarshan and All India Radio through INSAT Co-ordination Committee (ICC). In addition, ICC will also earmark certain INSAT capacity for non-government users. This additional capacity will be provided to non-governmental users by the Department of Space (DOS) on a commercial basis.

Use of Foreign Satellites:
In the interest of early introduction/expansion of services, use of foreign satellites will be allowed in special cases until such capacity can be provided by Indian satellites. The concerned administrative departments will consult DOS before authorising operations through foreign satellites.