The Hindustan Aeronautics Ltd–L&T consortium has won an Rs 860 crore deal from NewSpace India Limited to build five rockets, marking the industry’s foray into end-to-end production of Polar Satellite Launch Vehicles (PSLVs).

Following a technical commercial evaluation of three bids, the HAL-L&T consortium became the technically qualified L1 bidder for end-to-end production of the PSLV. According to the news agency PTI, the consortium will build five PSLV rockets – India’s multipurpose workhorse launch vehicle under the contract.

According to NSIL officials, about 80% of the mechanical systems and 60% of the electronic systems of India’s third-generation launch vehicle PSLV are from industry. However, the remaining percentages in these two areas are very complex.

The consortium will now be responsible for producing, assembling and integrating the launcher under a GOCO (Government Owned, Contractor Operated) model using existing ISRO facilities.

NSIL is also reportedly planning to acquire a fully-manufactured GSLV-Mk III rocket from an Indian industrial partner. In June, the coalition cabinet approved the transfer of 10 in-orbit communications satellites from the Indian government to NSIL. The government has also approved an increase in NSIL’s authorised share capital from Rs 1,000 crore to Rs 7,500 crore.

According to DoS officials, space sector reforms require NSIL to conduct end-to-end commercial space activities and operate as a full-fledged satellite operator.