AP decides to unveil space policy, to offer investment subsidies of 25 to 45% Space cities to come up in Lepakshi, Tirupati, to bring investment of Rs.25,000 cr.

In a first of its kind, Andhra Pradesh Government has decided to launch space policy, to set up space cities in Lepakshi and Tirupati and bring in investments to the tune of Rs.25,00- crore in the sector.

The 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 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. 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.

In a bid to position Andhra Pradesh at the forefront of India’s space sector, Chief Minister N. Chandrababu Naidu directed officials to finalise the AP Space Policy 4.0, with the goal of attracting 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 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 crore), Small (Rs.2.5 crore), Medium (Rs.25-Rs.125 crore), Large (Rs.125-Rs.500 crore), and Mega (Rs.500+ crore). Proposals to provide subsidies ranging from 25% to 45%, with special incentives for women, BC, SC, ST, minority, and differently-abled entrepreneurs are also under discussion.

Naidu 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. The CM 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 AP Government 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.