The US strengthened its export licensing requirements in 1989 after congressional hearings revealed that the Chinese authorities had been given unauthorised technical information by some American companies after the failure of a US communication satellite launch by China. US licensing procedures often take a long time. After repeated complaints from US firms, and its allies as well, about the delays in licensing, the US Congress authorised the department of state to establish a regulatory regime for the expeditious licensing of commercial communications satellite technologies, their components and systems to the US, NATO and major non-NATO allies, whilst ensuring priority to “national security and US obligations under the Missile Technology Control Regime (MTCR)”.

The new regime’s main feature is its ability to use high volume licences for components and technical data for multiple shipments to any of the NATO and major non-NATO allies within an approved framework, without having to meet complex documentary requirements normally associated with such exports. Since India is neither a NATO nor a major non-NATO ally, it cannot be the beneficiary of these relaxed licensing procedures. Incidentally, Pakistan as a major non-NATO ally is entitled to these facilities although it does not have any launch or satellite fabrication capabilities.

In addition, the launch of US built communication satellites involves complex export control procedures.

If India is to leverage its competitive strengths in satellite fabrication (which are already there) and its competitive launch services (later when GSLV is successful) and bid for both fabrication and launch of communication satellites within a tight framework, it needs to be part of the new US comsat regime, as most communication satellites use US parts, etc. This would intensify government-to-government discussions and negotiations. Fortunately, after the Next Steps in Strategic Partnership (NSSP), licensing procedures for ISRO have been relaxed as compared with earlier times when ISRO and its various units were sanctioned by the US government.

... contd.