ISRO Technologies Sold to Private Firms at Steep Discount: Parliamentary Panel

A Parliamentary Standing Committee report has raised concerns over the transfer of technologies developed by the Indian Space Research Organisation (ISRO) and other government entities to private firms at disproportionately low prices, while also flagging slow fund utilisation and potential delays in key upcoming space missions.

The observations were made in the 410th report of the Department-related Parliamentary Standing Committee on Science and Technology, Environment, Forests and Climate Change, which reviewed the functioning, financial management, and commercialisation practices of the Department of Space. The report was tabled in Parliament on 25 March 2026, during the 2026 Budget Session.

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Govt Space Tech Sold to Private Players at Massive Discounts

The committee noted that high-end technologies developed through public funding, including those related to satellites, rockets, advanced materials, chemicals, and specialised sub systems, were being transferred to private players at undervalued rates relative to their commercial potential. It warned that such pricing structures allow private firms to generate significant profits while originating public institutions receive only marginal returns.

According to data reviewed by the panel, around 100 technology transfer agreements have been signed for 61 technologies developed by government entities. Nearly 70 of these technologies were transferred for less than ₹10 lakh each. Within this group, many were licensed for under ₹5 lakh, some for as little as ₹6,000, and a few were transferred at no cost.

The committee also observed that there is currently no credible mechanism to verify whether the benefits of low-cost technology transfers are being passed on to the intended users for whom the technologies were developed. It recommended adopting a more competitive and market aligned pricing framework that reflects the true commercial value, uniqueness, and societal impact of publicly funded technologies.

Responding to the panel’s queries, the Department of Space said that its commercial arm, NewSpace India Limited, has been facilitating the transfer of technologies developed by ISRO and other government entities to Indian industry. The department also stated that it is moving towards a more structured and market based pricing system.

To improve transparency and accountability, the panel recommended the creation of clear guidelines for determining technology transfer costs. According to the department, a Standing Committee has been constituted under IN SPACe comprising representatives from the Department of Space, ISRO headquarters, IN SPACe, NewSpace India Limited, and the respective ISRO centres. The committee evaluates technology transfer fees by considering development costs, market demand, number of potential industry adopters, and possible downstream applications. The panel suggested that the Standing Committee calculate charges in accordance with such guidelines. In addition, the committee recommended that all technology transfer agreements be subject to periodic third party audits.

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Department of Space Underutilizes Funds – “Could Affect Programme Implementation”

Beyond technology transfer, the parliamentary panel also examined budget utilisation within the Department of Space. As of 31 January 2026, the department had utilised 78.23% of the outlay allocated at the Revised Estimates stage for FY 2025-26. The committee noted that the department historically maintained a utilisation rate of 96-98% and expressed hope that full utilisation would be achieved by the end of the financial year.

However, the panel flagged that several institutions under the department, including the Human Space Flight Centre, Indian Institute of Remote Sensing, ISRO Telemetry Tracking and Command Network, Laboratory for Electro Optics Systems, Master Control Facility, and IN SPACe, had not utilised 75% of their allocated funds within the stipulated period.

The committee warned that slower expenditure could affect programme implementation, delay projects, and lead to bunching of expenditure toward the end of the financial year. It recommended strengthening monitoring mechanisms and reviewing spending patterns of institutions on a quarterly basis.

The panel also raised concerns about slow expenditure on key space missions including Chandrayaan 4, Chandrayaan 5, and the Venus Orbiter Mission. It noted that continued slow utilisation could make timely completion of these missions challenging.

For Chandrayaan 4, allocation for 2025-26 was revised from ₹150 crore to ₹21 crore, while actual expenditure stood at ₹34.60 crore as of January 31, 2026. Under Chandrayaan 5, allocation revised to ₹14 crore saw expenditure of ₹0.58 crore. For the Venus Orbiter Mission, ₹29.50 crore was allocated after revision, but only ₹5.12 crore had been spent as of January 31, 2026.

The committee stated that these missions are transitioning from the initiation phase to execution, and therefore cash flow requirements are expected to increase. It recommended proactive steps to improve fund utilisation and project implementation.

The report also highlighted broader concerns related to financial discipline and planning within the Department of Space. The committee emphasised that optimal utilisation of funds is as important as allocation, and recommended timely disbursement, identification of reasons for slower spending, and corrective measures to improve efficiency.

The findings come at a time when India is expanding private participation in the space sector. The committee stressed that while industry participation is important, safeguards must ensure that taxpayer funded technologies are fairly valued and commercialised.

The panel concluded that without improvements in pricing mechanisms, monitoring, and financial management, India risks undervaluing critical space technologies even as it seeks to develop a competitive private space ecosystem.

[DS]

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