Hindustan Aeronautics Limited (HAL) Bengaluru has won a key contract to develop India’s Small Satellite Launch Vehicle (SSLV) after a two-stage techno-commercial bidding process, space regulator Indian Space Promotion and Authorisation Centre (IN-SPACe) and the Indian Space Research Organisation (ISRO) said on July 20.

Over the next two years, ISRO will transfer SSLV technology to HAL. During this period, HAL will be required to develop two prototypes, IN-SPACe Chairman Pawan Kumar Goenka said during a media interaction. Following that, the company aims to produce 6–12 SSLV rockets per year, based on demand.

With this development, HAL will become the third rocket producer in India, after space tech startups Skyroot Aerospace (Hyderabad) and Agnikul Cosmos (Chennai).

Goenka said HAL emerged as the highest bidder with a bid of Rs 511 crore, surpassing two other consortiums that participated in the commercial bidding process -- one led by Bengaluru-based Alpha Design and the other by Hyderabad-based Bharat Dynamics Limited (BDL).

In the first stage of the evaluation, six out of nine companies were shortlisted. In the second stage, three companies, HAL, Alpha Design, and BDL, were selected by an expert committee whose members included former Principal Scientific Adviser to the Government of India, Vijay Raghavan, among others.

During the initial two-year period, when the technology transfer is underway and HAL is producing the prototypes, the company will be restricted to using ISRO’s supply chain and will not be allowed to alter the design.

After this phase, HAL will be free to choose its own supply chain. "We also want the design of the SSLv to be improved," Goenka said, adding that the ISRO will take a consultative part in that process.

Goenka said that HAL will pay a part of the Rs 511 crore at the time of the signing of the contract, other payments will be made over a two-year period.

An HAL official said that the company intends to provide competitive pricing for the rocket launch services. However, it declined from providing specific figures.