In a first, HAL wins contract to build small satellite launch vehicles

In a historic move that will strengthen India’s space industry and democratise access to space technology, Bengaluru-based defence PSU Hindustan Aeronautics Limited (HAL) has won the contract to acquire and operationalise the small satellite launch vehicle (SSLV) technology from ISRO. 

Over the next two years, ISRO will transfer the SSLV technology to HAL, which will develop and launch two SSLV prototypes with complete help and handholding from ISRO. 

The Indian National Space Promotion and Authorisation Centre (IN-SPACe), which is the nodal and autonomous agency in the Department of Space (DoS) to enable and facilitate the participation of private players, and ISRO announced that HAL emerged as the winning bidder among three shortlisted bidders on June 20. 

The bid from HAL was Rs 511 crore, that will be paid in phases over the period of two years, which is when the technology transfer will occur. 

Alpha Design Technologies Ltd, Bengaluru (leading a consortium with Agnikul Cosmos and Walchand Industries Ltd); Bharat Dynamics Ltd, Hyderabad (leading a consortium with Skyroot Aerospace, Keltron and BHEL); and Hindustan Aeronautics Ltd, Bengaluru, were the three bidders shortlisted in the second stage of evaluation. HAL emerged the winner after several months of rigorous evaluation. 

Dr Pawan Kumar Goenka, Chairman, IN-SPACe, said that for India to realise the $44 billion space economy by 2033, enabling a robust public-private-partnership model was crucial. 

“The SSLV technology transfer marks a pivotal moment in India’s transformative commercial space segment, as this is one of the first instances of a space agency transferring complete launch vehicle technology to a company. Under this technology transfer agreement, HAL will have the capability to independently build, own, and commercialize SSLV launches,” he said. 

The Technology Transfer Agreement will be signed among HAL, NewSpace India Limited (NSIL), ISRO, and IN-SPACe. 

During the two-year handholding period, HAL will be restricted to using ISRO’s design. After this, the company is free to build on and develop the design and use its own supply chain, Goenka said. 

This would enable more small satellite launches from India’s ports.