Even as the Indian government looks to attract more investment into the expanding space business, Larsen & Toubro and Hindustan Aeronautics are among the companies being evaluated to possibly bid in India’s efforts to privatise its small satellite launch rocket, according to a report by Reuters quoting sources with knowledge of the matter.

The Indian Space Research Organisation (ISRO), the country’s space agency, created the Small Satellite Launch Vehicle (SSLV) as a low-cost way to launch satellites up to 500 kilogrammes (1,102 lb) into low-Earth orbit.

They service a booming market where SpaceX and its rivals compete to launch constellations of satellites for communications and data.

About 20 companies had submitted an expression of interest in bidding on the privatisation, the first of its kind under a policy drive by Prime Minister Narendra Modi to open launch and other space businesses to investment.

Within the next ten years, India wants to grow its market share in satellite launches by a factor of five.

The individual with direct knowledge of the situation who asked to remain anonymous because the negotiations are private said that the next step would be to open the bidding process itself.

An inquiry for comment from Reuters received no response from the companies.

HAL, formerly known as Hindustan Aeronautics, and the industrial behemoth Larsen & Toubro already have a contract with the government to produce and transport rockets to ISRO.

The businesses are responsible for producing and delivering five Polar Satellite Launch Vehicles (PSLV), also known as ISRO’s “workhorse” rocket, under the terms of that contract. In two years, deliveries are anticipated to begin.

Next month, ISRO will launch its Aditya-L1 mission, a space-based solar observatory, using the PSLV, which is 44 metres (144 feet) tall.

It will be ISRO’s maiden mission following this week’s historic first of Chandrayaan-3’s landing on the south pole of the moon.

It was anticipated that Chandrayaan-3’s success would support India’s initiatives to encourage private involvement in space projects. This week, share prices of companies that supply ISRO and its affiliates increased.

The SSLV program’s bidding procedure was launched in July by India’s newly established space regulatory authority, the Indian National Space Promotion and Authorisation Centre (IN-SPACe), by inviting qualified businesses to register an interest.

As opposed to a more constrained contract for the PSLV rockets, it will be the first Indian rocket to be fully privatised, meaning the winning bidder or consortia will take over the entire programme.

(Adapted from ThePrint.in)