Skip to main content

Summary of Antrix- devas scam


Excerpts from ET article

  • Antrix Corporation was set up as the marketing arm of Isro in 1992
  • company hoped to promote commercial exploitation of space products,technical consultancy services and transfer of technologies developed by Isro
  • A major objective is to facilitate development of space-related industrial capabilities in India
  • Forge Advisors,a US-based strategic consultancy, established an Indian company called Devas Multimedia,with some former Isro scientists on board.
  • Antrix inked a memorandum of understanding with Forge for exploring opportunities in digital multimedia services
  • agreement provided leasing of 90% of the space segment capacity on two satellites for 12 years to Devas
  • Antrixs board approved the draft agreement between the two sides,and the agreement was signed
Two Satellites
  • Antrix committed to build and launch two satellites
  • These two would have helped Devas deliver a range of services such as broadband to remote areas
here's how a scam was discovered
  • there was no tendering for awarding the contract to Devas
  • the Cabinet was not informed that the two satellites were being built by Isro for Devas
  • satellites were leased to Devas at throwaway prices

Counter arguments

  • Antrix-Isro,regularly leases satellite capacity to private firms in the direct-to-home business without tendering
  • Devas was bringing in new technology that had a high risk of failure
  • estimated loss of 2 lakh crore was based on comparing what Devas paid to 3G auction prices
    1. it was a nonsensical comparison because the 3G spectrum and its uses and market are completely different from those of the S-band spectrum and the related technology that Devas would have used

OUTCOME

  • Image of Antrix,which was supposed to be the government space technology arm that would bring in private investment and cutting-edge technology and market Indian space capabilities abroad,remains very badly damaged.

Comments

Popular posts from this blog

Union HRD Minister to Release NBT-NCAER Study on Reading Habits of the Literate Youth of North-East India

Youth of North-East India: Demographics and Readership (Highlights) Union Human Resource Development Minister Dr M  M   Pallam   Raju ,  will release a report  Youth of North-East India: Demographics and Readership  in New Delhi tomorrow,  20 th  November, 2012. Ministers of State for HRD,  Sh   Jitin   Prasada  and Dr  Shashi   Tharoor  would also be present on the occasion. This focused Report attempts to give an analytical and detailed account of the reading habits of the literate youth in the north-eastern states and their exposure to different forms of media, and how diverse socio-economic and motivational factors impact their reading habit. The reading of ‘leisure or non-text books’ among the literate youth is the special focus of the study. The Report is a follow-up study of the  National Youth Readership Survey  (2009-10) assigned to National Council of Applied Economic Research (NCAER) by the NBT under the National Action Plan for the Readership Development amon

IAS Notes

[Updated : 15 Nov 2012 03:15 PM] Indian Polity -  http://www.ankitrajvanshi.in/2012/11/polity-notes.html Friends, I am restarting the preparation and will by studying WITH all of you. Starting today, I'll be posting chapterwise notes as well Before every subject, I'll be creating a dynamic post such as this one. It'll be updated regularly with the chapter post backlinks on the blog. I'm starting with Indian Polity. Will be starting with Constitution. Check this space or the blog for new posts. Will also be posting questionnaires after each chapter. Keep studying, Keep dreaming, Keep rocking.. Happy Diwali!!

Foreign Institutional Investors (FII)

( Swapnil Patil & IAS OUR DREAM to be credited for this great work... ) What is FII? FII is nothing but Foreign Institutional Investors. Below entities are called FIIs 1. Pension  Funds 2. Mutual Funds 3. Insurance Companies 4. Investment Trusts 5. Banks 6. University Funds 7. Endowments 8. Foundations 9. Charitable Trusts 10.  Asset  Management  Companies 11. Institutional  Portfolio  Managers 12. Trustees 13. Power of Attorney Holders Advantages Enhanced flows of equity capital FIIs have a greater appetite for equity than debt in their asset structure. The opening up the economy to FIIs has been in line with the accepted preference for non-debt creating foreign inflows over foreign debt. Enhanced flow of equity capital helps improve capital structures and contributes towards building the investment gap. Managing uncertainty and controlling risks. FII inflows help in financial innovation and development of hedging instruments. Also, it not