HAL-L&T win ISRO's NSIL deal to build 5 PSLV rockets

Hindustan Aeronautics Ltd and L&T consortium bags deal for end to end production of 5 PSLV rockets. They bagged the Rs. 860 Cr deal from NSIL, the commercial arm of ISRO. Service level agreement has been signed for this, say NSIL sources.

Bengaluru: The State-owned Hindustan Aeronautics Limited (HAL) and L&T consortium have won a Rs 860 crore deal from NewSpace India Limited (NSIL) to build five PSLV (polar satellite launch vehicle) rockets. The HAL-L&T consortium emerged as the L1 bidder, which marked the industry's maiden foray into end-to-end production of PSLVs. The NSIL is the commercial arm of the Indian Space Research Organisation (ISRO).

HAL, India's aerospace and defence company headquartered in Bengaluru, will now be involved for manufacturing five rockets of PSLV, considered the versatile workhorse launch vehicle of the country. The HAL-L&T consortium had emerged as the technically qualified and the L1 bidder to undertake production of PSLV in the techno-commercial evaluation of three bids, sources said.

"We have now signed the service level agreement with the industry for production," said an official of NSIL, a central public sector enterprise under the Department of Space (DoS) and commercial arm of ISRO. "Maybe in less than two years, we (the 52:48 HAL-L&T consortium) will be able to deliver the first rocket from the industry consortium, fully built by the industry, with appropriate hand-holding from ISRO," the official said.

The consortium will now be responsible for producing, assembling and integrating the launcher by making use of the existing ISRO facilities under GOCO (Government Owned, Contractor Operated) model. In June this year, the Union Cabinet approved the transfer of 10 in-orbit communication satellites from Government of India to NSIL.

The government had also approved increasing the authorised share capital of NSIL from Rs 1,000 crore to Rs 7,500 crore. The space sector reforms mandated NSIL to undertake end-to-end commercial space activities and function as a full-fledged satellite operator, according to DoS officials. In 2020-21, NSIL achieved a revenue from operations of Rs 432.67 crore and a profit after tax of 121.84 crore. (With inputs from agencies)