Andhra Pradesh Space Policy 4.0: Rs 25,000 cr investment; Space Cities in Lepakshi, Tirupati

Amaravati: Chief Minister N Chandrababu Naidu directed officials to finalise the Andhra Pradesh Space Policy 4.0, to attract Rs 25,000 crore in investments. The policy also aims to generate direct employment for 5,000 people and indirect opportunities for nearly 30,000 people.

The CM has approved the development of Space Cities in Lepakshi and Tirupati, while also laying out strategic goals for the sector from 2025 to 2035.

‘Forefront of India’s space sector’

During a detailed review meeting held at the Undavalli camp office on Thursday, the chief minister emphasised the need to involve educational institutions to engage students and spark interest in space technologies for positioning Andhra Pradesh at the forefront of India’s space sector.

He directed the establishment of a technical committee and the provision of common infrastructure based on a plug-and-play model. The leading firms in communication technology have been offered opportunities to invest in the state.

The CM further highlighted that the integration of electronics, space, aerospace, defence, and drone technologies is key to the state’s broader innovation strategy.

The future belongs to space

Joining the meeting via video conference, Honorary Space Technology Advisor to the Government of Andhra Pradesh and former ISRO Chairman Dr S Somanath highlighted that the Government of India is launching several key projects under the Space Vision Policy-2047.

He underlined the role of private players, such as Starlink, SpaceX and Blue Origin, in transforming the sector globally, and echoed that the future undoubtedly belongs to space.

Up to 45% investment subsidy proposed

The chief minister instructed officials to offer more competitive investment incentives to attract companies to invest in the State’s space sector.

Investment categories have been classified as follows: Micro (Rs 1-2.5 Cr), Small (Rs 2.5-25 Cr), Medium (Rs 25-125 Cr), Large (Rs 125-500 Cr), and Mega (Rs 500 + Cr).

Proposals to provide subsidies ranging from 25 per cent to 45 per cent, with special incentives for women, BC, SC, ST, minority, and differently-abled entrepreneurs also under discussion.

Lepakshi Space City for Technology and R&D

The new policy envisions two dedicated space cities. Lepakshi Space City, spread across 500 acres, will focus on design and development. It will house institutions for R&D, space startups, innovation ecosystems, and services related to space applications.

Tirupati Space City for manufacturing and logistics

Tirupati Space City will serve as a hub for manufacturing and launch logistics, the CM said.

Facilities planned include launch vehicle assembly, satellite and payload assembly, mechanical system component manufacturing, and electronics-avionics assembly.

Its proximity to Chennai and Sriharikota, along with Lepakshi’s closeness to Bengaluru, offers strategic geographic advantages. The chief minister also proposed road connectivity from Tirupati Space City to Sriharikota.

India’s share in global space economy

India currently holds just 2 per cent of the global space economy, the CM said.

The target is to attract $44 billion in space investments by 2033. India’s Space Policy-2023 allows 100% FDI in the sector.

Under the India Space Vision-2047, goals include satellite manufacturing, remote sensing satellite launches, Chandrayaan 4, Venus Orbiter Mission, Mars Lander Mission, human spaceflight programs including space stations, next-gen launch vehicles (NGLVs) and a third launch pad at Sriharikota.

In alignment with these national ambitions, the Government of Andhra Pradesh is shaping its ‘Andhra Pradesh Space Policy 4.0’ to fuel innovation, generate employment, and make the state a pivotal force in the future of space exploration.