HAL bags Isro's rocket arm sale but is it privatization?

Questions have been raised as HAL is a public sector firm overseen by the defence ministry

- Shouvik Das

Almost three years since its first demonstrator mission launch, a ₹511-crore contract to privatize Indian Space Research Organisation's (Isro) small satellite launch vehicle (SSLV) was awarded to Hindustan Aeronautics Ltd by the government's nodal space agency on Friday.

However, considering that HAL is a public sector undertaking overseen by the defence ministry, analysts, observers and proxy advisory firms are questioning whether the award truly qualifies as 'privatization' of the government-built rocket.

The contract will see HAL take full ownership of the rocket that Isro built and first launched in August 2022.

Pawan Kumar Goenka, chairman, Indian National Space Promotion and Authorization Centre (In-Space), said the project is "not just a manufacturing contract—HAL will do end-to-end manufacturing, supply chain procurement, winning orders from clients, and launching and maintaining the rocket in the long run".

Isro will handhold HAL through the making and validation of the small rocket for two years.

Beyond this period, Goenka said HAL can onboard Isro as an advisor on a commercial contract basis. As of 20 June, the Union government holds a 71% stake in HAL.