With a view to positioning Andhra Pradesh as a national leader in the space technology sector, Chief Minister N. Chandrababu Naidu has directed officials to finalise the Andhra Pradesh Space Policy 4.0, which sets an ambitious target of attracting ₹25,000 crore in investments.
The policy also aims to generate 5,000 direct and nearly 30,000 indirect jobs, while laying the foundation for a new era of innovation, manufacturing, and research.
During a review meeting on Thursday, Mr. Naidu gave the green signal for the development of two Space Cities — one at Lepakshi, focused on research and development, and another at Tirupati, envisioned as a manufacturing and logistics hub.
He said integration of electronics, space, aerospace, defence, and drone technologies was key to the State’s broader innovation strategy.
Emphasising the strategic importance of aligning Andhra Pradesh’s innovation roadmap with emerging national and global space opportunities, Mr. Nadiu underscored the need to involve students and academic institutions to nurture talent in space technologies.
To attract investment across various scales — from micro to mega enterprises, the government proposed subsidies ranging between 25% and 45%, with additional incentives for entrepreneurs from socially and economically disadvantaged sections, including women, BC, SC, ST, minorities, and the differently-abled.
The policy categorises projects based on their size — micro (₹1 crore to ₹2.5 crore), small (₹2.5 core to ₹25 crore), medium (₹25 crore – ₹125 crore), large (₹125 crore – ₹500 crore), and mega (₹500+ crore).
The Lepakshi Space City, to be spread over 500 acres, would be developed as a hub for design, innovation, and startup incubation in space applications and R&D. The Tirupati Space City would focus on the assembly of launch vehicles, satellite systems, avionics, and mechanical components, leveraging its proximity to Chennai and Sriharikota for logistical advantage.
The Chief Minister also proposed a new road link connecting Tirupati with Sriharikota to enhance access.
Joining the meeting virtually, S. Somanath, former ISRO Chairman and Government of Andhra Pradesh’s Honorary Adviser for Space Technology, lauded the initiative and noted that India was entering a transformative phase under the Space Vision Policy-2047.
He cited the global success of private players such as SpaceX, Starlink, and Blue Origin, and remarked that Andhra Pradesh’s timely policy intervention would give it a competitive edge in the expanding space economy.