Andhra Pradesh eyes Rs 25,000 cr investments in space sector

Hyderabad: Andhra Pradesh is eyeing investments in the space sector with investment subsidies ranging from 25 per cent to 45 per cent.

Under Andhra Pradesh Space Policy 4.0, with the goal of attracting Rs 25,000 crore in investments, the N Chandrababu Naidu government is contemplating to establish two Space Cities in Lepakshi and Tirupati. Its proximity to Chennai and Sriharikota, along with Lepakshi's closeness to Bengaluru, offers strategic geographic advantages.

Lepakshi Space City, envisioned to 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 will serve as a hub for manufacturing and launch logistics. Facilities planned include launch vehicle assembly, satellite and payload assembly, mechanical system component manufacturing, and electronics-avionics assembly.

Chief Minister N Chandrababu Naidu during a review meeting with the officials about the new space policy also proposed road connectivity from Tirupati Space City to Sriharikota.

Andhra Pradesh observed that India currently holds just 2 per cent of the global space economy. The target is to attract $44 billion in space investments by 2033.

India’s Space Policy-2023 allows 100 per cent 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.

The policy aims to attract Rs 25,000 crore in investments and generate direct employment for 5,000 people and indirect opportunities for nearly 30,000 people.

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

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

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.

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 Micro (Rs 1-2.5 Cr), Small (Rs 2.5-Rs 25 Cr), Medium (Rs 25-Rs 125 Cr), Large (Rs 125-Rs 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 are also under discussion.