Will ISRO stop making launch vehicles? Employees seek official clarity on private sector shift

Days after the , nine employee associations representing staff across various Indian Space Research Organisation (ISRO) centres and units have written to the Department of Space Secretary and ISRO Chairman V Narayanan, seeking official clarification on the government’s policy regarding the privatisation or transfer of ISRO’s manufacturing and operational functions.

In a joint representation dated September 4, 2026, the associations raised concerns over reports and public statements regarding the proposed transfer of various activities from ISRO to private entities and public sector undertakings (PSUs).

Employee bodies cite Pawan Goenka’s remarks

The associations cited public statements made by Pawan Kumar Goenka, Chairman of IN-SPACe, at a summit on August 21, 2026. He was reported to have said: “Eventually, ISRO will not make any launch vehicles and will not manufacture any launch vehicles. That will all be done by the private sector or PSU.”

The associations said these statements have received wide national publicity but have not been accompanied by official communication from the Department of Space explaining the approved policy, its legal basis, phasing or consequences for the existing workforce and future recruitment.

Concerns over transfer of launch vehicle and satellite work

According to the representation, the transfer process has begun with SSLV technology and production rights handed over to Hindustan Aeronautics Limited (HAL), while it is proposed to be extended to PSLV and LVM3.The letter also mentions reports that PSUs may be excluded from the forthcoming transfer process, routine satellite manufacturing could move out of ISRO, and operation of new launch infrastructure, including the Space Launch Complex at Kulasekarapattinam, could be opened to private entities.

The associations further stated that around 120 technologies have already been transferred from ISRO to the private sector. They argued that ISRO was built as a national scientific institution with public funds and that launch vehicle design, realisation, integration, testing and launch operations are not merely “manufacturing contracts”, but represent core competence and strategic capability.

Employee concerns over jobs and recruitment

The associations warned that a progressive withdrawal from launch vehicle and satellite realisation could shrink in-house work, freeze sanctioned strength and close promotion avenues. They also expressed concern that existing employees working in development facilities could be rendered surplus or left without meaningful work while the same tasks are carried out by private contractors.

The representation said regular recruitment to Group A, B and C posts, already constrained by vacancies and attrition, could decline further. This, the associations said, could create uncertainty for employees and families who have planned their lives around the stability of ISRO service.

They also warned that strategic autonomy, quality assurance and safety culture could be diluted if core operations move outside public control.

Associations say they are not against private industry

The employee bodies clarified that their concern is not hostility towards Indian industry or legitimate commercialisation through NewSpace India Limited (NSIL). Instead, they said the issue is the absence of an official policy document clearly distinguishing between enabling private participation and dismantling ISRO’s own capabilities.

They have sought a time-bound written clarification on whether the IN-SPACe Chairman’s statements represent an approved Government of India decision or only IN-SPACe’s promotional outlook.

What the associations want clarified

The associations have asked for clarity on whether PSLV, LVM3, SSLV and successor vehicles will continue as ISRO functions. They have also questioned whether PSUs have been excluded from the proposed PSLV and LVM3 transfer and, if so, why. Other issues raised include the implications for sanctioned strength, vacancies, recruitment calendars and induction over the next five to 10 years. The associations have also sought safeguards for serving employees against adverse cadre reviews and erosion of promotional avenues. They want details of the institutional arrangement under which publicly created technology, facilities and launch complexes could be transferred to private operation, including the respective roles of NSIL and IN-SPACe. They have also asked whether recognised service associations will be consulted before any irreversible decision is taken.

ISRO employees seek written assurance

The associations have urged the Chairman to issue an official written clarification, confirm that no irreversible transfer of core realisation or launch functions will take place without clarity and consultation, and hold structured interactions with recognised associations. They have also sought an official reassurance that employees’ service conditions and public employment status will be protected.

“We submit this representation in a constructive and democratic spirit. Our loyalty to ISRO and to the national space programme is not in question. Precisely because of that loyalty, we consider it our duty to seek clarity before uncertainty hardens into irreversible policy,” the letter signed by nine general secretaries and presidents said.

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