New Delhi: Hindustan Aeronautics Limited (HAL) has won the competitive bid to manufacture India’s Small Satellite Launch Vehicle (SSLV), a significant development announced by the Indian National Space Promotion and Authorization Center (IN-SPACe) on Friday. At the time of the announcement, HAL’s shares traded at ₹4,977.60, reflecting a 1.54% gain from the previous close.
HAL Tops Competitive Bidding to Acquire SSLV Technology
HAL emerged as the highest bidder with an offer of ₹511 crore, outbidding two qualified consortiums led by Adani Group’s Alpha Design and Bharat Dynamics Ltd. Notably, HAL participated independently, without partnering as part of a consortium, distinguishing itself in the bidding process. This marks the first major strategic transfer of rocket technology from the Indian Space Research Organisation (ISRO) to an industrial player outside of ISRO’s direct operations.
Empowering India’s Commercial Space Ecosystem
By securing the technology transfer rights, HAL not only gains manufacturing capabilities but also obtains ownership and commercialisation rights of SSLV launches. This move aligns with the Indian government’s broader policy reforms under Prime Minister Narendra Modi aimed at liberalizing and expanding the country’s commercial space economy. The SSLV is designed to carry payloads of up to 500 kilograms to low-Earth orbit, addressing the rising global demand for small satellite launches.
Market Potential and Strategic Implications
The SSLV bidding attracted interest from nearly 20 companies, underscoring the growing commercial appetite in India’s space sector. Globally, the market for low-Earth orbit launch vehicles was valued at $13.9 billion in 2023 and is expected to reach $44 billion by 2032, according to Global Market Insights. India currently holds a 2% share of the global space economy but aims to increase its space market size fivefold—from $8 billion to $44 billion by 2030—further emphasizing the strategic importance of HAL’s new role in the sector.
Pawan Goenka, Chairperson of IN-SPACe, highlighted the significance of this milestone as the government accelerates the opening of its space domain to private industry and fosters innovation and competitiveness.
About HAL
Hindustan Aeronautics Limited (HAL) is an Indian public sector aerospace and defense company, headquartered in Bengaluru. It is one of the oldest and largest aerospace and defense manufacturers in the world, with a history dating back to 1940. HAL is involved in the design, development, manufacturing, and maintenance of aircraft, helicopters, engines, and other aerospace systems.