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Will ISRO Stop Manufacturing Launch Vehicles? Staff Bodies Seek Government Clarity

BRIEF: In a first, nine ISRO staff associations representing thousands of employees have formally sought written clarification on the government’s private-sector push in launch vehicle manufacturing. They have asked whether ISRO will retain core roles in PSLV, LVM-3 and SSLV realisation or be reduced to a residual R&D body.
Himanshu Pandey September 5, 2026
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NEW DELHI: Nine staff associations representing thousands of employees of the Indian Space Research Organisation (ISRO) under the Department of Space have formally sought written clarification from the Chairman of the Space Commission on the future role of ISRO in launch vehicle manufacturing and operations

The representation, dated 4 September, marks the first collective expression of concern by employee bodies since the government began opening the space sector to private participation about six years ago.

The associations have raised questions following a reported public statement by IN-SPACe chairman Pawan Goenka indicating that ISRO may eventually “not manufacturing any launch vehicles.”

They have asked whether this reflects an approved decision of the Government of India, the Space Commission or the Department of Space, and, if so, have requested the date, authority and text of any such policy.

Key Questions Raised

The employee bodies want clarity on whether the design, development, realisation, integration, testing and launch of vehicles such as the Polar Satellite Launch Vehicle (PSLV), Launch Vehicle Mark-3 (LVM-3), Small Satellite Launch Vehicle (SSLV) and their successors will continue as core ISRO functions or will cease.

They have also asked whether any decision has been taken to exclude public sector undertakings from the proposed transfer of PSLV and LVM-3 production, and the justification for such a step.

Further, the representation seeks details of the institutional framework under which technology, test facilities, launch complexes and know-how developed with public funds and the labour of generations of ISRO employees are being transferred or opened to private operation.

It specifically requests clarification on the respective roles of NewSpace India Limited (NSIL) and IN-SPACe in such transfers.

Concerns Over Institutional Role

The associations have stated that private participation in defined commercial activities can coexist with a strong, publicly owned ISRO.

However, they argue that a policy reducing the organisation to a “residual R&D boutique” while the realisation of the nation’s launch vehicles and the operation of its launch infrastructure pass out of public hands cannot be accepted without debate.

They describe launch-vehicle design, realisation, integration, testing and launch operations as core competence, institutional memory and strategic capability rather than mere manufacturing contracts.

Technology developed by ISRO is termed a national asset whose transfer must be transparent, accountable and consistent with strategic, safety and employment considerations.

Employment and Organisational Impact

The representation expresses concern that a progressive withdrawal of ISRO from launch-vehicle and satellite realisation could shrink in-house work, freeze or reduce sanctioned strength, and limit promotion and skill-development opportunities across technical, scientific, administrative and other cadres.

Existing employees, the associations fear, may be rendered surplus or redeployed while the same tasks are performed by private contractors using publicly developed technology. Regular recruitment to Group A, B and C posts, already constrained by vacancies and attrition, could decline further.

The joint representation has been signed by the ISRO Staff Association, SHAR Employees Association, ISAC Employees Association, ISRO Staff Association-LPSC, ISRO Staff Association-BBU, NRSA Employees Union, Space Employees Association-BBU, ISRO Staff Association-IPRC and SAC Employees Welfare Association. Reports indicate the bodies represent around 5,000 employees.

Constructive Stance

The associations have underlined that their loyalty to ISRO and the national space programme is not in question.

They submitted the representation in a constructive and democratic spirit, noting that serving employees have an earned right to be informed, consulted and protected on a policy of this magnitude.

They congratulated ISRO on the recent successful GSLV-F17/EOS-05 mission and stated that they will decide their further course of action after receiving a written reply.

The development comes at a time when India is actively encouraging private participation in the space sector through policy reforms and the establishment of entities such as IN-SPACe and NSIL.

The employee bodies have made clear that they are seeking transparency and institutional safeguards rather than opposing private involvement outright.

About the Author

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Himanshu Pandey

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Himanshu Pandey is the Co-Founder and Sub-Editor of Beats in Brief, and a journalism scholar at the University of Delhi with a strong interest in writing, content creation, and digital storytelling. He focuses on politics, geopolitics, infrastructure, development and current national issues, aiming to present clear, insightful and accessible narratives for readers.

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