Arianespace is considering taking a stake in Mumbai-based ASC Enterprise to launch India's first private sector satellite system, Agrani.

ASC Enterprise is led by Indian media mogul Subash Chandra who, with Teledesic's Craig McCaw, resurrected London-based satellite mobile communications company ICO.

The three-axis-stabilised 4,800kg (10,600lb) Agrani will go into orbit on an Ariane booster in late 2002 or early 2003. Arianespace sources say that the European organisation is interested in taking a minority stake in ASC primarily to boost confidence in the project and future private satellite networks in India.

Equipped with Ku- and C-band transponders, Agrani is designed to provide low-cost mobile and fixed satellite services in India, South Asia and the Gulf region.

The Agrani project has had a troubled past. In 1995, ASC signed a $700 million deal with Hughes Space Communications to manufacture a pair of identical satellites to form the space segment of Agrani. As part of the deal, ASC made an initial payment of $38 million to Hughes. A year later Hughes withdrew saying that Agrani backers lacked funds for further work. The case ended up in court, with Hughes ordered to pay $38 million to ASC plus $20 million in interest and court expenses.

Lockheed Martin was then awarded the satellite manufacture contract, but that partnership ended following the US manufacturer's failure to obtain an export licence due to the US export embargo on India. European manufacturer Alcatel is now manufacturing Agrani.

Source: Flight International