HAL wins ₹511-crore deal to build, own and commercialise SSLV launches

The Hindustan Aeronautics Limited has bagged a Transfer of Technology (ToT) deal, valued at ₹511 crore, from the Indian Space Research Organisation, to build and operate Small Satellite Launch Vehicles (SSLVs).

The SSLV is a three-stage vehicle to launch satellites that weigh less than 500 kg into the Lower Earth Orbit (LEO). The Indian National Space Promotion and Authorisation Centre (IN-SPACe) on Friday announced the HAL as the winning bidder among three shortlisted bidders. The deal will enable commercialisation of SSLV launches.

Other contenders

Apart from the HAL, which had applied independently, two other technically qualified bidders were shortlisted: Alpha Design Technologies Ltd., Bengaluru, leading a consortium with Agnikul Cosmos and Walchand Industries Ltd.; and Bharat Dynamics Ltd., Hyderabad, leading a consortium with Skyroot Aerospace, Keltron and Bharat Heavy Electricals Limited (BHEL). Among the three, HAL emerged as the highest bidder.

Pawan Goenka, Chairman, IN-SPACe, announced the winner. “The HAL will be giving ₹511 crore. It is a phased payment that will be done with some amount at the time of signing the contract and the remaining coming over a period of two years. The ToT phase will take two years and during these two years, the HAL will make at least two SSLV rockets with complete help and handholding from the ISRO and after two years, they will be on their own. So during the two years, they will draw all the technology and take it from there,” Dr. Goenka said.

Rigorous evaluation

IN-SPACe said the bidding process involved a rigorous eligibility and evaluation framework.

“A thorough evaluation process was followed, with various technology and financial readiness levels under review. The process, which continued for several months, culminated in the financial bid evaluation, where the HAL emerged as the highest bidder to acquire and operationalise SSLV technology,” the IN-SPACe said.

The ToT Agreement will be signed among HAL, NewSpace India Limited (NSIL), ISRO, and IN-SPACe. The agreement encompasses extensive training and handholding of HAL personnel by ISRO teams, both at ISRO and HAL facilities, for the realisation and launch of two SSLVs in the next two years.

“The launch vehicle system, being multidisciplinary in nature, would require the winning entity, HAL, to undergo rigorous handholding and training under ISRO at both ISRO’s and the entity’s facilities. This is aimed at realising the projected launch of two SSLVs from an Indian launch port,” Rajeev Jyoti, Director, Technical Directorate, IN-SPACe, said.

Barenya Senapati, Director (Finance), HAL said that the PSU intends to build six to 12 SSLVs per year during the production phase and that it may ramp up based on demand and requirement.

Space launch liability

To a question on who will take the liability of a privately manufactured SSLV, Dr. Goenka said the state (Government of India) has the responsibility. “It is an international rule and not something India or the HAL or IN-SPACe can decide. Now, it is up to the Indian government to decide how much of that liability they keep on themselves and how much they pass on to the owner and launcher of the vehicle. As per the contract we will have, the HAL will follow whatever is the law of the land.”

“We will come out with a decision on how the launch liability will be shared between the owner of the rocket and the Government of India,” he added.