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Employees pose in front of Vikram-S rocket, India?s first private rocket developed by Skyroot, an Indian Space-Tech startup, at a spaceport in Sriharikota, India, November 18, 2022. Skyroot/Handout via REUTERS

BENGALURU: The startup behind India’s first private space launch plans to put a satellite into orbit in 2023 and expects to be able to do so at half of the cost of established launch companies, the founders of Skyroot Aerospace have told Reuters in an interview.

The Hyderabad-based company, backed by Singapore’s sovereign wealth fund, GIC, says the US$68mil (RM304mil) it has raised will fund its next two launches. Skyroot has been in contact with more than 400 potential customers, it said.

Thousands of small satellite launches are planned in the coming years as companies build out networks to deliver broadband services like SpaceX’s Starlink and to power applications like tracking supply chains or monitoring offshore oil rigs.

Skyroot faces both established and up-and-coming rocket launch rivals that also promise to bring down costs. In China, startup Galactic Energy put five satellites into orbit last week in its fourth successful launch.

In Japan, Space One, backed by Canon Electronics and IHI Corp, plans to launch 20 small rockets per year by the middle of the decade.

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But Skyroot, which launched a test rocket last week, expects to cut the cost of a launch by 50% compared with current pricing for established competitors like Richard Branson’s Virgin Orbit and California-based Rocket Lab USA Inc.

Pawan Chandana, one of Skyroot’s two co-founders, told Reuters he expected a surge in demand for the company’s launch services if it proves itself with launches set for next year. “Most of these customers have been building constellations and will be launching them in the next five years,” he said.

The Modi government’s push to increase India’s share of the global space launch market from just 1% has given investors confidence that Skyroot and other startups have government backing for their efforts, Skyroot said.

“Three or four months back when we were talking to investors, one of the biggest questions they asked was if the government was supporting us,” Skyroot co-founder Bharath Daka told Reuters.

India opened the door to private space companies in 2020 with a regulatory overhaul and a new agency to boost private-sector launches.

Before that, companies could only act as contractors to the Indian Space Research Organisation, a government space agency with a reputation for frugal engineering. The country’s Mars mission in 2014 cost only US$74mil (RM331mil), less than the budget of the Hollywood space movie Gravity. — Reuters


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