Notice of deal termination sent to Devas: Govt

Following the government's decision to scrap the controversial deal between Antrix, the commercial arm of ISRO and the Indian arm of a US firm, a notice of termination of the agreement for lease of premium space segment of S-band spectrum has been sent to Devas.
 
"Antrix has sent the agreement termination notice to Devas on February 25," minister of state in prime minister's officem, V Narayanasamy said during Question Hour in Rajya Sabha.
 
The deal was entered into after a memorandum of understanding had been signed between Antrix Corp and Forge Advisors of US. Antrix entered into an agreement with Devas Multimedia Pvt Ltd on 28 January, 2005 for lease of a part of the space segment capacity in S-band on two geostationary satellites.
 
The deal aimed to secure the lease of 90 per cent of the space segment capacity by Antrix to Devas on two satellites for 12 years. Devas was to lease transponder capacity from the two satellites at a cost of $300 million (approximately Rs1350 crore) spread across 12 years. 
 
According to Narayanasamy following complaints and bearing the needs of defence, para-military forces, railways and other public utility services, the Cabinet Committee on Securities, had on 17 February directed the agency to annul the agreement.
   
He added that the Antrix-Devas agreement contained a 'force majeure' clause under with the contract could be terminated it the space segment was required by the government.
 
"On receipt of complaints on implementation of the agreement in November 2009, the Department of Space set up a committee on December 8, 2009 chaired by Dr B N Suresh, a former member of Space Commission," he said.
   
The contract had been recommended for annulment by the committee in July last year.

Later on 10 February this year, the government constituted a high powered committed for review of technical, commercial, procedural and financial aspects of the deal.
 
Narayanan said the committe would suggest "corrective measures and fix responsibility for lapses." He added the the panel would submit its reports "very shortly."