India’s space industry is taking a major step towards privatization. The government is set to transfer the production of the Small Satellite Launch Vehicle (SSLV) to a private company. Three contenders remain in the race, including a consortium linked to the Adani Group, as per a report.
The SSLV, developed by the Indian Space Research Organization (ISRO), is a cost-effective vehicle for launching satellites up to 500 kg into low-Earth orbit (LEO). LEO is a highly lucrative segment in the growing global satellite launch market.
India’s Push for Space Privatization
India successfully launched the SSLV in 2023. Following this, the government decided to privatize its production. This move aligns with the broader vision of boosting India’s share in the global space economy. Currently, private companies like SpaceX dominate the sector.
Initially, 20 companies showed interest in the SSLV bid. Now, three finalist groups remain:
Alpha Design Technologies (partly owned by Adani Defence Systems and Technologies)
Bharat Dynamics Limited (state-backed firm)
Hindustan Aeronautics Limited (another government-linked group)
The Privatisation Deal
The winning company will pay ISRO 3 billion rupees ($30 million) for SSLV’s production rights. This includes access to design knowledge, manufacturing processes, and training. The agreement will also provide up to 24 months of technical support or two successful launches.
Apart from financial strength, the bidders must prove they can manufacture and sustain SSLV operations. The Indian government aims to position the winner as a major competitor in the global space market.
India’s Growing Space Ambitions
India currently holds just 2% of the global space economy. However, the Modi government wants to increase this share fivefold to $44 billion by 2030. The satellite launch market is expanding rapidly, projected to grow from $5.6 billion in 2025 to $113 billion by 2030.
With limited launch slots available from major players like SpaceX, new entrants have an opportunity to capture a significant market share. The SSLV privatisation is a critical step towards making India a key player in the commercial space sector.
