The Hindustan Aeronautics Limited (HAL) has secured a landmark contract to develop India’s Small Satellite Launch Vehicle (SSLV), following a two-stage techno-commercial bidding process, officials from the Indian National Space Promotion and Authorization Centre (IN-SPACe) and the Indian Space Research Organisation (ISRO) announced on Friday.
As part of the agreement, ISRO will transfer SSLV technology to HAL over a two-year period, during which HAL will manufacture two prototype rockets. Post this phase, the aerospace major is expected to produce between six to twelve SSLVs annually, depending on commercial demand.
“With this milestone, HAL will become India’s third rocket manufacturer after private space startups Skyroot Aerospace and Agnikul Cosmos,” said IN-SPACe Chairman Pawan Kumar Goenka during a media briefing.
HAL emerged as the highest bidder with a quote of Rs 511 crore, outpacing two rival consortiums—one led by Bengaluru-based Alpha Design and the other by Hyderabad-headquartered Bharat Dynamics Limited (BDL).
The selection process initially shortlisted six of nine companies, and the final choice was made by an expert committee that included former Principal Scientific Adviser to the Government of India, Vijay Raghavan, among others.
During the initial two-year period, HAL will be bound to use ISRO’s existing design and supply chain for the SSLV. However, after the technology transfer is complete, HAL will have the flexibility to adopt its own suppliers and make design improvements in consultation with ISRO.
“Design enhancements are welcome and will be part of a collaborative process going forward,” Goenka added.
The payment for the project will be made in tranches, with an upfront portion payable at the time of contract signing and the rest disbursed over two years.
A senior HAL official noted that the company is targeting competitive pricing for its commercial SSLV launch services, but declined to share specific cost details.
The SSLV project marks a significant step in India’s efforts to commercialize its space sector, especially in the rapidly growing small satellite launch market.