Hindustan Aeronautics Limited (HAL) has achieved a significant milestone by winning the bid to manufacture India’s Small Satellite Launch Vehicle (SSLV), marking a pivotal step in the government’s drive to open the country’s space sector to private industry.

The announcement was made by the Indian National Space Promotion and Authorisation Center (IN-SPACe) on June 20, 2025, with HAL securing the SSLV technology transfer for a winning bid of ₹511 crore.

HAL distinguished itself in the competitive bidding process by applying solo, rather than as part of a consortium. This set it apart from two other qualified consortiums led by Adani Group’s Alpha Design and Bharat Dynamics Ltd, which it ultimately outpaced. The process attracted initial interest from nearly 20 companies, underscoring the growing appeal of India’s commercial space sector.

The contract involves a comprehensive technology transfer from the Indian Space Research Organisation (ISRO) to HAL over a two-year period. During this phase, HAL will manufacture two prototype SSLVs under ISRO’s guidance, using ISRO’s supply chain and without altering the rocket’s design.

After this initial period, HAL will be free to choose its own suppliers and may work with ISRO to further improve the SSLV design. The technology package encompasses end-to-end capabilities, including design, manufacturing, quality control, integration, launch operations, and post-flight analysis, with ISRO providing extensive training and support to ensure a smooth transition.

With this win, HAL not only gains the right to build the SSLV but also to own and commercialise its launches, positioning itself as a key player in India’s ambition to create a thriving commercial space ecosystem. HAL plans to scale up production to 6–12 SSLVs annually after the technology transfer phase, targeting both domestic and international markets.

The SSLV, designed to carry payloads of up to 500 kg to low-Earth orbit, is tailored to meet the surging global demand for small satellite deployment. This move is the first strategic transfer of rocket technology under Prime Minister Narendra Modi’s reforms to liberalise India’s space economy.

The global market for low-Earth orbit launch vehicles was valued at $13.9 billion in 2023 and is projected to reach $44 billion by 2032. Currently, India holds just a 2% share of the global space economy but aims to expand this fivefold to $44 billion by 2030.

The announcement had an immediate positive impact on HAL’s stock, with shares trading up by 1.54% at ₹4,977.60 following the news. With this contract, HAL becomes India’s third rocket producer, joining the ranks of private space tech startups Skyroot Aerospace and Agnikul Cosmos.

HAL’s solo win in the SSLV bid marks a watershed moment for India’s space sector, combining advanced technology transfer, commercial opportunity, and a clear signal of the government’s intent to foster a globally competitive private space industry.

Based On A Reuters Report