HAL will now make India's next-gen small satellite launch vehicles
What's the story
Hindustan Aeronautics Limited (HAL) has bagged a major contract from the Indian Space Research Organisation(ISRO) to manufacture Small Satellite Launch Vehicles (SSLVs).
The deal was announced after a two-stage techno-commercial bidding process by space regulator Indian National Space Promotion and Authorization Center (IN-SPACe).
HAL was chosen as the top bidder with a bid of ₹511 crore, beating two other consortiums in the commercial bidding process.
New player
HAL will have to develop 2 prototypes of the SSLV
With this contract, HAL will become India's third rocket manufacturer after space tech start-ups Skyroot Aerospace and Agnikul Cosmos.
The technology transfer from ISRO to HAL will take place over the next two years. During this time, HAL will have to develop two prototypes of the SSLV.
After that, it plans to manufacture 6-12 SSLVs annually depending on demand.
Competitive edge
HAL's bid was highest in the commercial bidding process
HAL's bid of ₹511 crore was the highest in the commercial bidding process, beating two other consortiums led by Bengaluru-based Alpha Design and Hyderabad-based Bharat Dynamics Limited (BDL).
In the first stage of evaluation, six out of nine companies were shortlisted. An expert committee then selected HAL, Alpha Design, and BDL for the second stage based on technical and financial criteria.
Future plans
Deal is seen as a major step in India's global...
During the initial two-year period of technology transfer and prototype production, HAL will be restricted to ISRO's supply chain and design. After this phase, it can choose its own supply chain.
An HAL official said the company plans to offer competitive pricing for rocket launch services but did not disclose specific figures.
The deal is seen as a major step in India's $44 billion global space economy ambitions.
Economic impact
HAL is expected to generate an estimated $6.5M per launch
HAL is expected to produce 6-12 SSLVs annually, generating an estimated $6.5 million per launch.
"HAL will be profitable once it starts manufacturing SSLV rockets," Dr Pawan Goenka, Chairman of IN-SPACe, told CNBC-TV18.
The deal will be formalized through an agreement involving HAL, ISRO, NewSpace India Ltd (NSIL), and IN-SPACe with extensive training by ISRO for the realization and launch of two SSLVs over two years.