Shares of Hindustan Aeronautics Limited (HAL) gained almost 2% on 11 September after the company, along with the Indian National Space Promotion and Authorisation Centre (IN-SPACe), NewSpace India Limited (NSIL), and the Indian Space Research Organisation (ISRO), signed a technology transfer agreement for the Small Satellite Launch Vehicle (SSLV) in Bangalore.

The SSLV is a three-stage rocket designed to deliver satellites weighing less than 500 kilograms into Low Earth Orbit (LEO). According to the agreement, HAL will absorb the technology over the following two years, followed by a ten-year production phase. 

Furthermore, the deal grants HAL a non-exclusive, non-transferable licence for design, production, quality control, integration, launch operations, and post-flight analysis, as well as training and support.

D K Sunil, CMD, HAL, said, “HAL will work closely with IN-SPACe, ISRO, and NSIL to absorb, indigenise, and commercialise the SSLV technology, ensuring the highest standards of quality and reliability in small satellite launch services. HAL recognises the strategic importance of SSL V in meeting the growing demand for launching small satellites for applications in communication, earth observation, navigation, and more. HAL’s efforts will not only ensure indigenous manufacturing of SSL V s but also create new opportunities for Indian MSMEs, start -ups, and the wider industrial ecosystem.” 

Furthermore, HAL will be in charge of mass-producing SSLVs to meet both domestic and worldwide demand. 

Crucially, the agreement allows HAL to develop, own, and operate the launch vehicle, boosting its long-term goal of establishing a dedicated space sector. The decision also signals HAL’s transformation from a component supplier to an end-to-end launch service provider, allowing it to enter the fast-expanding small satellite industry, according to the company.

Hindustan Aeronautics Limited, founded in 1940 and based in Bangalore, is India’s largest aerospace and defence business, as well as one of the oldest and largest in the world. Its operations include the production of aeroplanes, helicopters, and components, with notable products being the Dhruv advanced light helicopter, the Tejas light combat aircraft, and the Hindustan Ambassador vehicle.

HAL is also responsible for the creation and development of new products and upgrades, as well as the repair and refurbishment of aeroplanes and helicopters. Additionally, HAL manufactures critical satellite structures. 

At 1:39 pm, the shares of Hindustan Aeronautics were trading 0.27% higher at Rs 4,570 on NSE.

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