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New Delhi: A parliamentary panel has raised concerns over the transfer of technologies in the space sector to the private sector at disproportionately low prices relative to their commercial potential. The panel in its report has found that in certain cases, technology transfer was done for a fee as nominal as Rs 6,000 and in some instances without any fee at all. Accordingly it has recommended that all technology transfer agreements be subject to periodic third-party audits.

The panel has also flagged slow pace of expenditure under space missions including Chandrayaan-4, Chandrayaan-5 and the Venus Orbiter Mission and said that if this continues “the timely accomplishment of these missions as per the proposed timelines may become challenging.”

The recommendations were made by the department related parliamentary standing committee on space and technology, environment, forests and climate change in its 410th report Demands for Grants (2-26-27) of the Department of Space. The committee headed by Bharatiya Janata Party (BJP) MP Bhubaneshwar Kalita tabled its report in parliament last week.

In its report the committee observed that technologies in the space sector are being transferred to private players at “undervalued rates allowing these partners to earn significant profits while the originating institutes receive only a marginal share of the value created.” The report said that there is no credible mechanism to show whether such low cost technology transfers are being passed on to their target users.

“The Committee expresses concern over the transfer of technologies in the space sector at disproportionately low prices relative to their commercial potential. It has been observed that technologies are often transferred to private players at undervalued rates, allowing these partners to earn significant profits while the originating institutes receive only a marginal share of the value created,” the report said.

The committee had sought that the Department of Space elaborate on the technology transfer process followed by NSIL (NewSpace India Limited-a wholly union government owned undertaking) and details of the technologies transferred by it since its inception, including information on the fees received through such transfers. The Department submitted in response that it has signed 100 Technology Transfer Agreements for transferring 61 technologies developed at ISRO/ Department of Space to Indian Industry.

The committee found that in certain cases technology transfer was done for a fee as nominal as Rs 6,000 and in some instances without any fee at all. The Department said in response to the committee that the NSIL had transferred the “Distress Alert Transmitter – 2nd Generation”- a device primarily used by fishermen on small boats for sending emergency messages-technology at a very low price to industry.

“Since this technology is intended for societal benefit, it was transferred to industry at a low or zero price for those who had already taken the first-generation DAT technology. The Department further stated that it is moving towards a more competitive and market-aligned pricing framework for technology transfer,” the report noted the department as saying.

However, the committee in its report noted that there is no credible mechanism to verify the benefits of such low cost transfers.

“Furthermore, there is no credible mechanism to verify whether the benefits of low-cost technology transfers are being passed on to the intended target users for whom the technologies were developed,” the report said.

The committee has recommended that the Department of Space should adopt a competitive and market-aligned pricing framework for technology transfer and licensing fees should reflect “true commercial value, uniqueness, and societal impact of technologies developed through public funding.”

The Committee has recommended the establishment of clear guidelines to determine technology transfer costs, and that the Standing Committee constituted by IN-SPACe for evaluating technology fees should calculate fees in accordance with these guidelines.

“To ensure transparency and accountability, the Committee further recommends that all technology transfer agreements be subject to periodic third-party audits,” the report said.

Low expenditure on space missions

The Committee in its report while noting the significance of India’s forthcoming space missions including Chandrayaan-4, Chandrayaan-5 and the Venus Orbiter Mission flagged the slow pace of expenditure under these missions so far and said that their timely accomplishment may become challenging if this pace continues. The report said “the Committee notes with concern the slow pace of expenditure under these missions so far.”

The report said that while for Chandrayaan-4, an allocation of Rs 150 crore was made at the Budget Estimate (BE) stage for the financial year 2025–26, this was subsequently revised downward to Rs 21 crore at the Revised Estimate (RE) stage, but the actual expenditure incurred up to January 31, 2026 stood at Rs 34.60 crore.

Under Chandrayaan-5, an allocation of Rs 2 crore was made at the BE stage for 2025–26, which was later revised upward to Rs 14 crore at the RE stage; however, the actual expenditure incurred as of January 31, 2026 was only Rs 0.58 crore.

For the Venus Orbiter Mission, for the financial year 2024–25, the BE allocation of Rs 1 crore was revised to Rs 2.10 crore at the RE stage, but no expenditure was incurred during the year. In the following financial year 2025–26, the BE allocation of Rs 50 crore was revised downward to Rs 29.50 crore. However, the actual expenditure incurred up to January 31, 2026 was Rs 5.12 crore.

“The Committee is apprehensive that, if the pace of expenditure and project implementation continues at this level, the timely accomplishment of these missions as per the proposed timelines may become challenging,” the report said.

The committee said in the report that it accepted the Department’s response that scientific missions of this nature are “inherently iterative in character and are often constrained by several technical and operational factors, including design finalisation, availability of specialized components, vendor readiness and mission configuration requirements.” But it also said that steps are needed to improve the pace of fund utilisation.

“The Committee is of the view that these missions are presently transitioning from the initiation phase to the execution phase, and therefore the cash flow requirements are likely to increase substantially in the coming year. In view of the strategic and scientific importance of these missions, the Committee strongly recommends that the Department take proactive steps to improve the pace of fund utilization and project implementation,” it said.

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