HAL Secures Complete SSLV Technology from ISRO, Signaling a Transformative Phase for Indian Space

June 27, 2025 By IronHearted

In a significant development for India’s space industry, Hindustan Aeronautics Limited (HAL), a prominent state-owned aerospace company, signed a ₹511 crore ($59 million) contract on June 21, 2025, to acquire full ownership of the Small Satellite Launch Vehicle (SSLV) technology from the Indian Space Research Organisation (ISRO). Announced by the Indian National Space Promotion and Authorisation Centre (IN-SPACe), this marks the first complete transfer of a launch vehicle to a non-ISRO entity. HAL, best known for producing the Tejas fighter aircraft, will now have the authority to manufacture, market, and conduct satellite launches using the SSLV, targeting the high-growth global small satellite segment. This article delves into the specifics of the agreement, its technological and strategic importance, potential hurdles, and implications for India’s broader space ambitions.

Understanding the SSLV Transfer

The SSLV, an ISRO-designed, three-stage solid-fueled rocket with an additional liquid-fueled velocity trimming module, is optimized for deploying small satellites into low Earth orbit (LEO). Capable of carrying up to 500 kilograms to LEO or 300 kilograms to sun-synchronous orbit, it offers a streamlined, cost-efficient launch process with minimal ground support. Standing 34 meters tall and weighing 120 tonnes, it boasts a quick integration timeline—requiring only a week to assemble—and a launch readiness window of just 72 hours. These features make it especially suitable for on-demand launches of microsatellites and nanosatellites used in communication, Earth monitoring, and scientific missions.

HAL secured the contract after a two-stage technical and commercial selection process managed by IN-SPACe. Competing bids came from consortiums involving companies like Alpha Design Technologies, Agnikul Cosmos, Walchand Industries, Bharat Dynamics Limited, and Skyroot Aerospace. HAL’s winning proposal, valued at ₹511 crore, includes a two-year transition period during which ISRO will assist HAL in building two SSLV units following established procedures from previous SSLV launches (D1, D2, and D3). Once this handholding period ends in August 2027, HAL will have full rights to produce, modify, and sell SSLVs independently, including forming its own supplier base. The agreement will be formalized between HAL, ISRO, NewSpace India Limited (NSIL), and IN-SPACe, with ISRO providing in-depth training at both ISRO and HAL facilities.

India’s Space Sector at an Inflection Point

India’s space industry is currently valued at $8 billion, comprising around 2% of the global space economy. The aim is to grow this to $44 billion by 2033. SSLV technology is crucial to achieving this goal, especially as the demand for launching compact, cost-effective satellites continues to rise globally. Market estimates suggest that the LEO launch segment will expand from $13.9 billion in 2023 to $44 billion by 2032, driven largely by satellite constellations and miniaturized payloads.

Historically, ISRO has maintained ownership and operational control of all Indian launch vehicles. This handover to HAL, therefore, is unprecedented and reflects India’s push to unlock the full commercial potential of space through liberalization policies introduced under Prime Minister Narendra Modi. It also demonstrates how India is embracing public-private collaboration as a catalyst for growth.

HAL, previously involved in producing rockets like the Polar Satellite Launch Vehicle (PSLV) under ISRO’s oversight, now transitions into an autonomous launch vehicle provider. The rigorous selection process—featuring scrutiny from a panel headed by former Principal Scientific Adviser K. VijayRaghavan—saw 20 interested parties narrowed down to six shortlisted candidates, with HAL ultimately emerging as the preferred partner.

Strategic Benefits

Expanding India’s Role in Commercial Launches
With the acquisition, HAL is poised to enter the competitive global small satellite launch market. SSLV launches, priced around $6.5 million each, offer an economical alternative to international services. HAL plans to scale up production to 6–12 rockets annually depending on demand, reinforcing India’s appeal as a reliable launch partner. The upcoming spaceport in Kulasekharapatnam, Tamil Nadu, alongside a specialized manufacturing cluster, will support these ambitions.
Boosting Self-Reliance in High-Tech Domains
Gaining full SSLV technology contributes to India’s strategic autonomy in space. It supports the government’s Atmanirbhar Bharat initiative by reducing dependence on foreign technology and boosting domestic manufacturing in a sensitive, high-value sector.
Economic Growth and Job Creation
The contract is expected to have positive ripple effects across the economy, creating employment opportunities in engineering, logistics, component manufacturing, and services related to satellite deployment and data management. HAL’s entry into launch services alongside private startups like Skyroot Aerospace and Agnikul Cosmos diversifies the market and encourages price and innovation competition.
New Public-Private Dynamics
Despite being a public sector enterprise, HAL’s selection highlights a shift in India’s space strategy, blurring lines between government-run and private industry. IN-SPACe Chairman Pawan Goenka emphasized this openness by stating that there is no distinction between public and private bidders under the current policy framework.

SSLV: Design and Future Prospects

Developed over seven years at ISRO’s Vikram Sarabhai Space Centre (VSSC), the SSLV is tailored for simplicity and rapid deployment. It allows for orbital drop-offs with minimal support infrastructure and can be launched with a core team of six personnel. The rocket’s third developmental flight (SSLV-D3) in 2024 confirmed consistent performance and operational maturity.

During the transition phase, HAL will rely on ISRO’s supply chain while constructing two SSLV prototypes. Once full ownership is transferred, HAL can alter designs and independently source components. IN-SPACe has also scheduled two interim SSLV launches in late 2025 and early 2026. These missions, using ISRO’s launch pads at Sriharikota and eventually the SSLV-specific complex in Kulasekharapatnam, will carry payloads from private companies and a test platform named SMiLE (SSLV Module in LEO Experiment), designed to emulate PSLV’s POEM (PSLV Orbital Experimental Module).

Challenges and Concerns

Steep Technical Demands
Manufacturing and launching rockets is technically complex and requires precise execution. Even though HAL has experience in aerospace engineering, mastering end-to-end SSLV operations within a two-year deadline poses a substantial challenge.
Competitive Landscape
Globally, companies like SpaceX and Rocket Lab dominate small satellite launches. Within India, HAL will also compete with nimble startups such as Skyroot and Agnikul. Establishing a competitive advantage in terms of reliability, cost, and customer service will be crucial.
Liability Issues
According to international treaties, the Indian government remains liable for any accidents or failures during launches. IN-SPACe is currently determining how liability will be allocated to HAL, which may include mandatory launch insurance similar to arrangements for private players.
Infrastructure Requirements
While plans for new infrastructure are underway, realizing a launch cadence of one SSLV every two weeks—HAL’s goal—will demand extensive investment in facilities, logistics, and personnel training.

Stakeholder Impact

HAL: This agreement allows HAL to diversify beyond defense aviation and enter the fast-growing commercial space sector. According to HAL Director (Finance) Barenya Senapati, the SSLV initiative will not affect the firm’s existing operations and will instead provide a new revenue stream through competitive satellite launch offerings.
ISRO and NSIL: ISRO will shift focus to R&D and pioneering missions like human spaceflight and deep space exploration, while NSIL will manage commercial aspects. This separation of roles promotes specialization and efficiency.
Private Startups: Even though HAL, a PSU, secured the SSLV contract, the transparent bidding process and ongoing support for upcoming SSLV launches ensure that private startups remain integral to India’s space vision.
Global Clients: HAL’s new capability opens the door for international customers seeking affordable and reliable launch services, potentially drawing business away from more expensive global competitors.

Future Outlook

By 2027, HAL aims to be fully capable of independently manufacturing and launching SSLVs at a frequency of up to 12 launches per year. The upcoming spaceport in Tamil Nadu and supporting infrastructure will be key to this goal. Posts on X (formerly Twitter) from popular accounts like @MeghUpdates and @iPatelMayur hailed the announcement as a transformative moment for India’s space ambitions. Still, some commentators noted that HAL must match the agility of private players to truly succeed in the global marketplace.

Conclusion

The ₹511 crore SSLV technology acquisition by HAL on June 21, 2025, represents a pivotal shift in India’s approach to space exploration and commercialization. With full ownership and operational freedom over the SSLV program expected by 2027, HAL is set to become a major player in the global small satellite launch market. This move strengthens India’s technological sovereignty, boosts economic prospects, and reflects the success of its liberalized space policy. Though challenges in scaling and competition persist, HAL’s foray into independent satellite launches could mark the beginning of a new era for India’s space sector.