In a significant move towards enhancing private investment in India’s burgeoning space sector, companies Larsen & Toubro and Hindustan Aeronautics (HAL) have been vetted to potentially bid for the privatization of India’s small satellite launch rocket. This development comes as part of the Indian government’s efforts to increase investment in the thriving space market, with the aim of significantly expanding its share in the global satellite launch sector.
The Small Satellite Launch Vehicle (SSLV), designed by the Indian Space Research Organisation (ISRO), serves as a cost-effective solution to deploy satellites weighing up to 500 kg into low-earth orbit. This rocket caters to the rising demand for launching clusters of satellites for communication and data purposes, an arena where prominent players like SpaceX and its competitors are engaged in robust competition.
Approximately 20 companies have shown interest in bidding for the privatization initiative, marking a pioneering effort under Prime Minister Narendra Modi’s policy drive to open up space-related businesses, including launch services, to external investment. The government’s ambition is to elevate India’s market share in the global satellite launch sector fivefold within the next decade.
The upcoming phase of this process will involve initiating the formal bidding process itself, according to an insider familiar with the matter. The source, who wished to remain anonymous as discussions are not public, provided insights into the ongoing developments.
Both Hindustan Aeronautics (HAL) and Larsen & Toubro, a notable industrial conglomerate, are not new entrants to the space domain. These companies currently possess a contract with the government to manufacture and deliver rockets to ISRO. This existing agreement entails the production and supply of five Polar Satellite Launch Vehicles (PSLV), often referred to as ISRO’s “workhorse” rockets. The delivery of these rockets is slated to commence within the next two years.
ISRO, the national space agency, has planned to employ the PSLV, standing tall at 44 meters (144 feet), to launch its Aditya-L1 mission, a space-based solar observatory, next month. This upcoming mission follows ISRO’s groundbreaking achievement of successfully landing the Chandrayaan-3 spacecraft on the moon’s south pole, a milestone attained just this week. This accomplishment has been expected to catalyze private investment interest in India’s space endeavors, consequently leading to an upward trend in the share prices of ISRO suppliers and related companies.
The initiation of the bidding process for the SSLV program began in July under the purview of India’s newly established space regulatory body, the Indian National Space Promotion and Authorisation Centre (IN-SPACe). Qualified entities were provided the opportunity to register their interest. Notably, the SSLV program marks the first instance of a fully privatized Indian rocket, signifying that the winning bidder or consortium will assume responsibility for the entire program. This differs from the more limited contract structure associated with manufacturing the PSLV rockets.
In the trajectory of India’s space exploration journey, the step towards privatization aligns with the nation’s aspirations for increased prominence and innovation in the global space industry. The collaboration between established entities like Larsen & Toubro and HAL showcases a concerted effort to leverage expertise for the mutual benefit of both the space sector and the Indian economy at large.
In conclusion, the screening of Larsen & Toubro and Hindustan Aeronautics for potential bids in India’s satellite launch privatization drive underscores the nation’s commitment to fostering a dynamic and competitive space sector. This progressive initiative aligns with India’s ambition to assert a stronger presence in the global satellite launch market and stimulate economic growth through space innovation and investment.
