There was a time not too long ago when Hindustan Aeronautics Limited (HAL) was mocked as a bloated, slow-moving behemoth. It was dubbed irrelevant in an era where private sector players—some politically favoured—were thought to hold the key to India’s defence and aerospace future. The same HAL is now writing a bold new chapter in India’s high-tech industry, edging out even the might of Adani-backed defence conglomerates in a competitive ISRO tender. It’s a victory that’s both symbolic and strategic. On Friday, HAL was declared the winner of the bid to take over ISRO’s Small Satellite Launch Vehicle (SSLV) technology—a deal worth ₹511 crore. It beat out not one but two major consortia: one led by Alpha Design Technologies, backed by the Adani Group, and another led by the government’s own Bharat Dynamics Limited. HAL was the sole standalone bidder, proving not only its capability but also its growing confidence in taking on India’s most cutting-edge technological challenges. This win should force a reassessment of how we view public sector enterprises. For decades, HAL was pilloried—not always fairly. Critics pounced when the Modi government chose the Rafale fighter jet from France over a HAL-backed option, interpreting it as a signal of HAL’s incompetence. But much of the PSU’s earlier lethargy stemmed from budgetary starvation and policy neglect by previous governments. Innovation demands investment, not indifference. That changed post-2014. The Modi government recognised HAL’s potential and steadily ramped up budgetary support, allowing the PSU to modernise and innovate. For example, HAL played a key role in producing the Tejas Light Combat Aircraft, now proudly part of the Indian Air Force. It helped develop Pinaka multi-barrel rocket launchers, worked on upgrades to Sukhoi Su-30MKIs, and built ALH Dhruv helicopters. Today, HAL isn’t just assembling foreign designs—it’s co-developing technologies and platforms with Indian and global partners.
The SSLV contract marks a new frontier. Designed to launch satellites of up to 500 kg into low Earth orbit, the SSLV is ISRO’s answer to rapid, on-demand space deployment—vital in times of military or strategic urgency. That a public sector entity is now entrusted with this technology—not merely as a contractor, but as a manufacturer with freedom to innovate after the third rocket—is both empowering and telling. This is not to say HAL has become flawless overnight. But its transformation is a case study in what can happen when government vision aligns with PSU potential. For years, PSUs were caught in a bureaucratic no-man’s land: expected to behave like profit-making corporations, but without autonomy, capital, or incentives. HAL’s resurgence breaks that stereotype. This also sends a larger message. India’s private sector—including titans like the Adani Group—is vital. But a mature economy cannot afford to weaken its strategic PSUs, especially in sectors like aerospace and defence, where national interest trumps market logic. Rather than pitting public and private against each other, the model should be one of competitive cooperation. HAL’s win proves that, given a level playing field and policy clarity, a PSU can hold its own—even excel—against private competition. Importantly, the HAL-ISRO partnership ensures technology doesn’t just remain locked within government labs but enters into full-scale production with national security applications. As Indian National Space Promotion and Authorisation Centre Chairman Pawan Goenka noted, ISRO will guide HAL through the first two SSLV launches before handing the reins completely. After that, HAL will have the autonomy to improve designs, select vendors, and lead from the front. In short, HAL’s latest feat is not just a contract win—it’s a coming-of-age moment. A vindication of public sector resilience. A signal that India does not always need to look westward or to private billionaires for high-tech solutions. Sometimes, the answers lie in our backyard—quietly gearing up, defying the odds, and, when given a chance, soaring sky-high. Kudos, HAL. You’ve earned your lift-off.
