Hindustan Aeronautics Limited (HAL) achieved a significant milestone on Friday after being declared the winner of the bid for the transfer of technology (ToT) of the Small Satellite Launch Vehicle (SSLV). The SSLV is the Indian Space Research Organisation's (ISRO) rocket to launch satellites of up to 500 kg into low-earth orbit. HAL edged out two consortia.

According to a PTI report, HAL, the fighter jet manufacturer, was the only bidder for the contract to build the ISRO-designed rocket. It competed against two consortia — one led by Alpha Design Technologies, backed by the Adani Group, and the other led by Hyderabad-based Bharat Dynamics Limited.

HAL posted a message on X saying it would absorb, manufacture, and commercialise SSLV technology. “HAL’s selection for the SSLV ToT will enable indigenous production and further development of small satellite launch capabilities, opening up new partnerships with domestic and international satellite operators,” said Dr DK Sunil, Chairman and Managing Director of HAL.

HAL placed a winning bid of ₹511 crore to become the sole manufacturer of SSLV after the technology transfer process, which is expected to take place over the next two years, PTI said.

“Under this technology-transfer agreement, HAL will have the capability to independently build, own and commercialise SSLV launches,” said Pawan Kumar Goenka, chairman of the Indian National Space Promotion and Authorisation Centre (IN-SPACe), at a press conference in New Delhi.

HAL became the third company to build rockets after space start-ups Skyroot Aerospace and Agnikul Cosmos, the report added.

Goenka said nine companies had shown interest in the SSLV ToT. Three were rejected, and of the remaining six, three chose not to apply.

Goenka called the SSLV technology transfer a pivotal moment in India's commercial space sector. He said it was the first time a space agency had transferred complete launch vehicle technology to a company.

Goenka said ISRO would handhold HAL and help it build two prototype rockets over the next two years. After that, HAL is expected to build six to ten SSLVs annually based on market demand.

“HAL will be free to improve on the design and select its own vendors from the third rocket after the two-year period,” Goenka added.

HAL said SSLV is a compact, cost-effective, and highly flexible launch vehicle. ISRO developed it to meet the rising demand for launching small satellites into low-earth orbit.

ISRO designed the SSLV to launch small satellites at short notice, a capability needed by defence forces in emergencies.

“This collaboration marks a significant step towards strengthening India’s commercial satellite-launch capabilities and more specifically, in enabling Indian industry in realising this SSLV,” said Radhakrishnan Durairaj, Chairman and Managing Director of New Space India Limited (NSIL).

According to the PTI report, the move is part of efforts to let ISRO focus on research and shift routine satellite launches using proven vehicles to the private sector.

“We are looking forward to working closely under ISRO and IN-SPACe’s guidance to progress in phases and realise the end objectives. We are confident of steering a cohesive ecosystem that enables more small satellite launches from India’s ports,” said DK Sunil, CMD, HAL.

HAL, NSIL, ISRO, and IN-SPACe will sign the technology-transfer agreement.

The agreement will include extensive training and support for HAL personnel by ISRO teams, both at ISRO and HAL facilities, for the realisation and launch of two SSLVs in the next two years, the report said.