The Indian Space Research Organisation (ISRO) launched its first satellite mission of 2026 from the Satish Dhawan Space Centre in Sriharikota, Andhra Pradesh, on Monday, 12 January. The rocket lifted off smoothly, carrying 16 satellites toward their planned orbit. But in the third stage, it went off course, lost contact, and all satellites were lost in space before reaching orbit. So, where are they now? When will they come back to Earth? Or will they keep orbiting in space? And who pays for failed rocket missions? What happens to onboard satellites? Onboard satellites from failed rocket launches, like ISRO’s recent PSLV-C62 mission, where 16 payloads were lost due to a 3rd stage anomaly, typically fail to reach stable orbits and become uncontrolled space debris. Without proper release or control, they drift in unstable elliptical paths around Earth. Gradually, gravity pulls them down until atmospheric drag causes them to re-enter and pulls them into the atmosphere, where they burn up like shooting stars. This may take a few weeks or even a few years, depending on altitude. This process turns them into potential hazards for other spacecraft. Unlike old satellites, which get proper send-offs. Operators boost them to distant “graveyard” orbits above busy space areas, or they guide them to crash into oceans safely. Also Read| ISRO’s first mission of 2026 hits turbulence Old or decommissioned satellites? For decommissioned or old satellites, the space agencies like NASA and ISRO pre-plan disposal with reserved fuel and follow global rules to safely remove them and reduce space junk. Low-Earth orbit ones (200-2,000 km up) feel thin air friction that slows them naturally. At 400-600 km, they fall and burn up in 5-10 years. Higher at 700-1,000 km, it takes 100-200 years or more. To speed things up and stay safe, teams use leftover fuel for controlled drops. Large spacecraft target ‘Point Nemo’, Earth’s most remote ocean spot, over 2,000 km from land where debris sinks harmlessly into deep waters. High-altitude geostationary satellites at 36,000 km are boosted even farther to ‘Graveyard Orbits’, where they drift for centuries without risking collisions with active missions. Global UN guidelines require these disposals within 25 years or just 5 years in some regions to curb space junk and maintain orbital safety. Also Read| ISRO’s PSLV-C62 mission is the space agency’s workhorse rocket, with 63 launches including Chandrayaan-1 and Aditya-L1 Who pays when rocket missions go wrong? Rocket launch failures, such as ISRO’s recent PSLV-C62 mission that lost 16 satellites due to a third-stage anomaly, highlights the important role of space insurance in managing huge financial risks, as satellites can cost millions to hundreds of millions of dollars. Space insurance transfers financial risks of launch failures and satellite malfunctions from operators to insurers through customised policies. Launch providers often hold policies, passing premium costs to satellite owners via bespoke contracts that define coverage scope, unlike standardised terrestrial insurance. In practice, launch providers purchase policies and pass premium costs to satellite owners, creating shared responsibility until separation; after that, owners often self-insure or buy add-ons. Many small CubeSats and low-Earth orbit satellites skip full coverage due to low individual costs, absorbing losses as business expenses. NASA, ESA, and ISRO employ distinct spacecraft insurance policies reflecting their governmental frameworks and risk tolerances. NASA primarily self-insures its missions through US federal budgets, absorbing losses internally while mandating commercial partners in programs like Commercial Crew to secure third-party liability coverage. ESA similarly self-insures core missions funded by member states but requires launch providers and operators in collaborative ventures to procure commercial launch and in-orbit insurance. ISRO fully self-insures both its satellites and launch vehicles via Indian taxpayer funds. It adopts a hybrid model, often self-insuring domestic launches but purchasing commercial insurance for satellites launched via foreign vehicles.
Who is financially responsible for ISRO’s PSLV-C62? Financial responsibility for the lost 16 satellites in ISRO’s PSLV-C62 mission is owned by DRDO (primary payload EOS-N1/Anvesha), Indian organisations like Dhruva Space and universities, plus international entities from Spain, Brazil, Nepal, UK, US and others, depending on insurance arrangements and mission phases.
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