Hindustan Aeronautics (HAL) has bagged a Rs 511 crore deal to manufacture and design ISRO’s Small Satellite Launch Vehicle (SSLV). HAL announced that it had emerged as the top bidder in a competitive process conducted by the Indian National Space Promotion and Authorization Center (IN-SPACe).
With this, HAL becomes the first Indian firm to own, build, and commercialise an entire launch vehicle system.
Each SSLV launch to fetch HAL $6.5 million
According to CNBC-TV18, HAL is expected to manufacture 6 to 8 SSLV rockets each year to meet both domestic and international demand. It is expected to earn around $6.5 million per launch. “HAL will be profitable once it starts manufacturing SSLV rockets… Two years from now, it will be the only company making them in India,” Pawan Goenka, the head of IN-SPACe told CNBC-TV18.
The SSLV is designed to provide on-demand launch services for small satellites, which are growing in demand globally.
IN-SPACe confirms Rs 492.65 crore winning bid for SSLV project
According to Reuters, Goenka, told reporters that HAL’s winning bid was Rs 492.65 crore ($59 million), adding that the technology transfer phase will take two years.
The technology transfer includes comprehensive documentation on design, manufacturing, quality control, integration, launch operations, and post-flight analysis, along with training and support for technology absorption.
The technology handover will take place through an agreement involving HAL, ISRO, NewSpace India Ltd (NSIL), and IN-SPACe. As part of the process, ISRO will provide full training and support for the production and launch of two SSLV rockets over the next two years.
Adani Defence, Bharat Dynamics lose out to HAL in SSLV tech transfer bid
HAL won the bid against two strong consortia — one led by Alpha Design Technologies, a unit of Adani Defence Systems, and state-backed Bharat Dynamics, reports Reuters.
The move to hand over the SSLV’s technology to HAL marks a significant shift for India’s space industry, which has already granted satellite communication service licenses to global and domestic firms such as France’s Eutelsat and Reliance Jio’s satellite venture.
The share price of HAL rose as much as 1.6 per cent to hit the session’s high at Rs 4,980 on June 20.