The Andhra Pradesh government has announced a major plan to set up two space cities and four defence hubs under its new Aerospace and Defence Policy 2025–30. The aim is to attract investments worth ₹25,000 crore and create thousands of high-skilled jobs in the coming years.
Space City Projects
The state will build two dedicated space cities:
Tirupati Space City will cover around 300 acres. It will focus on rocket assembly, avionics, payload integration, and testing facilities. The location is close to ISRO’s launch centre at Sriharikota, which gives it a strategic advantage. Skyroot Aerospace has already signed on as a partner.
Lepakshi Space City will cover about 500 acres. It will support research, innovation, and space startups. The site is near Bengaluru, making it easier to connect with a large talent pool from the city’s tech ecosystem.
Officials said the twin space cities will create a complete ecosystem for aerospace companies, startups, and research institutions.
Four Defence Hubs Planned
In addition to space projects, the government plans to develop four large defence hubs:
Hub LocationArea FocusJaggaiahpetDonakonda Central Andhra6000 AcersMissiles and AmmunitionLepakshiMadakasira, Southern Andhra10000 AcresAircraft and defence electronicsOrvakalKurnool Western Andhra4000 AcresRobotics and unmanned systemsVisakhapatnamAnakapalli Coastal Andhra3000 AcresNaval equipment and logistics
The idea is to distribute the hubs across the state so that each region can specialise in different areas of defence production.
Policy Incentives
The Aerospace & Defence Policy 2025–30 offers several incentives to attract companies:
- Subsidies of up to 45% for eligible investors.
- Special packages for large projects.
- Dedicated support for startups in aerospace and defence.
- Land banks and ready-to-use plots for industries.
Chief Minister N. Chandrababu Naidu said the government wants Andhra Pradesh to become a global hub for space and defence manufacturing. He stressed that the policy will bring jobs, skill development, and new opportunities for local industries.
Why Andhra Pradesh?
The government believes Andhra Pradesh has unique advantages:
- Proximity to ISRO – Tirupati is close to Sriharikota, which hosts India’s main spaceport.
- Access to Bengaluru talent – The Lepakshi hub is close to Bengaluru, India’s aerospace and IT capital.
- Large land parcels – The state has already identified thousands of acres for industrial use.
Officials say these factors make Andhra Pradesh a natural choice for large-scale aerospace and defence projects.
Industry Response
Industry experts have welcomed the announcement but also urged the government to focus on execution. Startups have said that beyond land and subsidies, they need testing labs, certification centres, and supply chain support to grow.
Investors also noted that Andhra Pradesh must move quickly to compete with Telangana and Karnataka, which already have established aerospace clusters.
Expected Impact
If the projects succeed, Andhra Pradesh could:
- Create thousands of new jobs in aerospace, defence electronics, and robotics.
- Reduce India’s dependence on imported defence equipment.
- Attract global companies to set up local operations.
- Support new startups and research partnerships with universities.
The government hopes the projects will boost the local economy and place Andhra Pradesh on the global aerospace map.
Challenges Ahead
While the plan is ambitious, experts warn that implementation will be key. Building large-scale infrastructure takes time, and defence manufacturing is often slow due to regulations and costs. Retaining talent in smaller towns may also be a challenge if social infrastructure like schools and hospitals does not keep pace.
Conclusion
Andhra Pradesh’s decision to set up a space city in Tirupati and four defence hubs marks one of the most ambitious industrial moves in recent years. The projects could transform the state into a major aerospace and defence hub. But success will depend on fast execution, strong industry partnerships, and long-term policy support.
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