Space calling: India's first private PSLV is about to take off

Three years ago, the Indian Space Research Organisation (Isro) contracted out the manufacture of the PSLV, which it has developed and flown for decades. A joint venture between state-run aerospace firm Hindustan Aeronautics Ltd and conglomerate Larsen & Toubro Ltd, which will build five such rockets, is now nearly ready with the first in the series.

“We’ve worked with Isro for a long time, and this is an opportunity for us to showcase what we can do in terms of core space products. We’re handling the core hardware manufacturing part of the deal, and if all goes well, we should see multiple PSLV launches in 2026 itself," said Amit Ramchandani, senior vice-president and head of precision engineering and systems at L&T, confirming the launch timeline.

Privatizing rocket production follows the US model where the space agency sets the specifications and the rockets are built by private entities like SpaceX, Blue Origin and Northrop Grumman. The launch of India's first such rocket could attract more space startups and set the stage for more public-private partnerships. Under the contract, the HAL-L&T venture has agreed to build five PSLVs for ₹860 crore.

Isro's commercial unit NewSpace India Ltd (NSIL) is handling the private PSLV project, without the direct involvement of the Indian space agency or its nodal space authorization body, Indian National Space Promotion and Authorization Centre (In-Space).

“The HAL-L&T PSLV deal is a manufacturing contract that is being handled directly by NSIL, and does not fall under us. The revenue potential is there for India’s private space sector, but growth has been slow to start. For the next two fiscals, the pace of growth of private space revenue will likely be slow, but in the long run, missions like the PSLV privatization will help accelerate the pace," In-Space chairman Pawan Kumar Goenka said.

In-Space’s decadal vision for the country's private space economy, a document first presented by Goenka in October 2023, pegged space launch services as an industry generating over ₹31,000 crore ($3.5 billion) in annual revenue by 2033.

Queries emailed to NewSpace India remained unanswered.

The private boost

The new rocket will carry the earth observation satellite Oceansat, overseen by the department of space and Isro, and designed to cater to Indian academia and research. The project is likely to cost less than ₹500 crore—including ₹150-200 crore for building the rocket and ₹50 crore for the satellite payload—according to the two senior officials cited above.

The American private space industry is at least two decades ahead. SpaceX, the top global space launch services firm, was founded in 2002 and made its first successful commercial satellite launch in September 2008. In comparison, India’s space sector was opened only in 2020.

According to industry estimates, a SpaceX satellite launch can cost as little as $1,200 per kg, while Isro’s launches cost around $5,000 per kg. US firms have managed to lower costs because of the scale and frequency of launches, something India aims to achieve with the privatization.

Space startups

“A privately built PSLV means that startups will have opportunities to work as component and key systems suppliers of the rocket, akin to how the likes of L&T have worked as suppliers to Isro before. In turn, this will help us in generating revenue, as well as getting more consistent business from within India itself," said Yashas Karanam, co-founder and chief operating officer of Bellatrix Aerospace. The Bengaluru-based company, which has raised nearly $11 million, has developed a proprietary propulsion system, something it believes it can sell to vendors such as the HAL-L&T JV in the future.

The PSLV is a very well-established satellite launcher, said Surbhi Patni Dalmia, country head for India at global space consulting and advisory firm NovaSpace, adding the private sector's ability to build it at scale will add more capacity to India's launchers, which in turn would generate more revenue for India in the long run.

"Additionally, having private firms focus on manufacturing the PSLV frees up Isro’s bandwidth to focus on deep space research missions, which is what their core job is," she said.

The workhorse of Isro

The PSLV is Isro’s most reliable launch vehicle, having flown in 63 satellite launch missions since September 1993. It has launched most of India’s key satellites, as well as top Isro research missions such as Chandrayaan and Mangalyaan. Its busiest year was 2016, when it flew six times, sometimes carrying satellites from Canada and the US as well.

Isro manufactures the PSLV only when required. As the hunt for generating more revenue from space operations begins, a privatized PSLV will allow the highly reliable rocket—a key factor in global space operations—to be built at scale. Overall, the PSLV has a 98% success rate, failing only once in commercial space missions, during its sole 2025 launch in May.