Andhra Pradesh unveils Space Policy 4.0

Hyderabad: As countries worldwide join the global space race, Andhra Pradesh has set an ambitious goal to position itself as India's space manufacturing hub. With the global space economy valued at over $500 billion, India currently captures just 2 per cent of this market but aims to reach $44 billion by 2030.

Aligned with India's vision, Andhra Pradesh has unveiled an aggressive new Space Policy 4.0 offering unprecedented incentives, including investment subsidies up to Rs 75 crore for large enterprises, along with comprehensive support for MSMEs and startups.

The state is also planning an umbrella organization the Andhra Pradesh Space City Corporation to drive all initiatives related to the development of two planned Space Cities.

The state's strategic advantages are compelling as it is home to India's only operational spaceport at Sriharikota, which has successfully launched over 90 missions, plus an established manufacturing base and skilled workforce.

The space industry is democratizing as private launch providers and commercial satellite platforms lower entry barriers. India's domestic ecosystem already includes 700+ firms supporting ISRO missions and 200-250 space-focused startups driving innovation, according to a senior Andhra Pradesh government official.

To effectively implement the Andhra Pradesh Space Policy 4.0, the state is planning to establish a dedicated Special Purpose Vehicle (SPV) named the Andhra Pradesh Space City Corporation. This entity will be responsible for driving all initiatives related to the development of both envisioned Space Cities.

"It will serve as the central agency to coordinate infrastructure development, raise startup funds, attract investments, facilitate industry partnerships, build partnerships to attract global demand, and liaise with all Government of India entities for domestic demand. The Corporation will also facilitate investors to ensure streamlined execution of space-related projects. The Government of Andhra Pradesh envisions positioning the state as a globally competitive and innovation-driven hub for space research, technology development, manufacturing, and launch services. The space sector is seen as a strategic catalyst for fostering high-technology employment, driving industrial expansion, and advancing scientific capabilities within the state," the senior government official told DH.

Andhra Pradesh has planned two dedicated space industrial zones, a Space City in Sri Satya Sai District along the Hyderabad-Bengaluru Industrial Corridor and a Space City in Tirupati District for design, R&D, manufacturing, and launch-related activities.

The Andhra space policy envisages facilitating investments amounting to Rs 25,000 crore in the space sector over the next ten years and creating 5,000 direct jobs and 30,000 indirect jobs in high-technology space-linked domains.

Large and MSME enterprises will also receive technology transfer subsidies. MSMEs that successfully enter Technology Transfer agreements with national or international organizations are eligible for the Technology Transfer subsidy. These enterprises can receive 50 per cent of the technology acquisition cost, up to a maximum of Rs 1 crore. The incentive will be distributed over a four-year period, starting from the Date of Commencement of Production (DCP). A dedicated corpus of Rs 100 crore will be created to fund this subsidy.

Additional incentives include power subsidies, Net SGST Reimbursement, and Stamp Duty and Transfer Duty Reimbursement.

Support to startups

For startups in the space sector, Andhra Pradesh is offering comprehensive support. An upfront initial grant of up to Rs 2 lakhs and phased grants up to Rs 15 lakhs based on the startup's existing phase and performance at the previous stage, until product viability is reached capped at Rs 15 lakhs total per startup. Andhra Pradesh is also offering seed funding with equity up to Rs 50 lakhs, based on an equity sharing model. Besides, go-to-market support up to Rs 50 lakhs, based on an equity sharing model and need-based seed funding with equity for Deeptech and Advanced tech startups up to Rs 1 crore are also planned.

As part of infrastructure support 100 per cent rental subsidy for workstations in notified coworking/neighborhood work/MSME Parks for 30 employees for one year is being offered.