Hindustan Aeronautics Limited (HAL) is set to take full commercial control of the Small Satellite Launch Vehicle (SSLV) programme within two years, following a landmark technology transfer agreement facilitated by the Indian National Space Promotion and Authorisation Centre (INSPACe) and the Indian Space Research Organisation (ISRO).

HAL was chosen from among three bidders and will pay ₹511 crore over two years for the SSLV technology. This arrangement marks the first instance in India where a public sector undertaking will independently own, manufacture, and operate a launch vehicle business, a model previously associated with private companies like Skyroot and Agnikul.

This is not simply a manufacturing contract but an end-to-end technology transfer enabling HAL to act as the owner-operator of the SSLV business. HAL will be responsible for sourcing components, manufacturing rockets, conducting launches, developing the market, and managing financial outcomes, including profit and loss.

Crucially, while ISRO will retain the technology patents, HAL will have non-exclusive ownership of the SSLV design, with the right to modify and enhance it—any new developments or improvements by HAL can be patented by the company itself.

During the initial two-year transfer phase, HAL will build two SSLVs under direct guidance and handholding from ISRO. Simultaneously, up to 15–16 SSLV launches are expected during this period using rockets built by other vendors currently under contract with NewSpace India Limited (NSIL), starting from October this year and continuing into early and mid-2026. Upon completion of the technology transfer, HAL will become the sole authorised manufacturer of SSLVs in India—no other company will be permitted to build them in the foreseeable future.

The SSLV is a three-stage solid-propulsion rocket, specifically designed by ISRO to cost-effectively launch small satellites (up to 500 kg) into low Earth orbit, with a flexible, launch-on-demand capability. HAL aims to ramp up production to 6–12 SSLV rockets per year based on global market demand, potentially generating around $6.5 million in revenue per launch.

The technology transfer is set to further India’s ambition to be a major global hub for small satellite launches, strengthen public-private partnerships, and commercialise national space capabilities. HAL’s move into SSLV manufacturing is also expected to drive the growth of a robust commercial launch ecosystem, while ISRO shifts further towards research and development and away from routine commercial operations. There are no immediate plans for additional future bidding rounds for SSLV production.

Based On CNBCTV18 Report