The 12 Ku band transponders of INSAT 4A satellite were allotted to Tata Sky on an exclusive basis. As its transponders were functioning with reduced power, Tata Sky voiced its concerns about the health of satellite and continuously represented at different levels in Government to launch GSAT 10 satellite to avoid adverse impact on its business. At the instance of Tata Sky, DOS launched (September 2012) GSAT 10 satellite having 12 Ku band transponders and positioned it at the same orbital slot (83° east) as that of INSAT 4A. ICC (November 2012) proposed that the 12 transponders of INSAT 4A could be swapped with 12 transponders in GSAT 10. This proposal was agreed
to by Space Commission (April 2013).
Tata Sky, which was initially willing to swap the transponders of INSAT 4A with GSAT 10, subsequently declined (July 2013) the proposal on the ground that swapping would not provide additional capacity required by them. Audit observed that apprehending litigation from Tata Sky, DOS did not allocate capacity on GSAT 10 to any other service provider and entire 12 Ku band transponders capable of generating revenue of more than23 `82.80 crore a year continued to remain idle (May 2014) since its launch in May 2011.
DOS replied (March 2014) that Ku band capacity in GSAT 10 was treated as spare capacity with appropriate approvals