The annulment comes against the backdrop of serious objections raised by the opposition parties over the issue.
The Union government on Thursday scrapped the controversial 2005 S-band allotment deal between Antrix, the commercial arm of ISRO, and Devas Multimedia, a private firm.
The annulment comes against the backdrop of serious objections raised by the opposition parties over the issue.
The decision was taken at a meeting of the cabinet committee on security (CCS), chaired by prime minister Manmohan Singh. Law minister Veerapa Moily said there has been an increased demand for spectrum for national needs, particularly in the fields of defence, para-military forces, railways and other public utility services as well as for societal needs.
“In view of the country’s strategic requirements, the government will not be able to provide slot in S-band to Antrix for commercial activities, including for those which are the subject matter of existing contractual obligations for S-band,” Moily added.
Reacting to Devas’ threats to take legal recourse, Moily said that it could be annulled under the provisions of the agreement and also under the law. “Even if they go to court they will not succeed,” Moily said.
The minister defended the government for having entered into the agreement under the circumstances prevailing at that time. “The government or the PM is not at fault, but we will go into the root of this matter,” he said.
The BJP welcomed the move, but looked in no mood to put a lid on the issue. Describing the development as “better late than never”, party spokesperson Shahnawaz Hussain said the government should explain the circumstances that led to signing of the deal.
He said that the ISRO-Devas deal has left many questions answered. He sought the government’s response as to why the agreement was signed overlooking objections by the Space Commission. “What were the compelling circumstances? Under whose pressure was it signed? Why did the annulment process took seven months?’’ he asked.
“If the government has taken a decision in its wisdom in the national interest, it should be welcomed by all,” party spokesperson Shakeel Ahmed told reporters on Thursday.
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