Astrobase Space Technologies on 12 November 2026 announced an investment of ₹800 crore in Andhra Pradesh to substantially expand its rocket engine testing and launch vehicle development infrastructure, in a move that marks a significant acceleration of India's private space transportation ecosystem.

The MoU and What It Covers

The company signed a Memorandum of Understanding (MoU) with the Andhra Pradesh Economic Development Board at the 31st CII Partnership Summit 2026 in Visakhapatnam. The agreement covers the expansion of Astrobase's existing rocket engine testing facility at Thimmasamudram in Sri Sathya Sai district.

Under the plan, Astrobase will add 339 acres to its current footprint, taking the total area to approximately 360 acres from just around 22 acres at present — a more than 16-fold increase in operational land.

What the Expanded Facility Will Enable

Astrobase Space Technologies CEO and Co-founder Neeraj Khandelwal said the expansion represents a critical milestone in building advanced space transportation capabilities from India. 'This expanded infrastructure will enable us to undertake critical testing programmes, including static hot-fire tests and stage-level hop tests, while accelerating the development of reusable launch vehicle technologies,' Khandelwal said.

He added that while India has demonstrated 'remarkable prowess in space exploration and technology,' the next frontier lies in translating that strength into the ability to 'transport payloads to space more frequently, reliably and at scale.'

The project is expected to generate approximately 500 direct jobs and nearly 1,000 indirect employment opportunities in the region.

Karnataka Investment and the Bigger Picture

Notably, this announcement follows closely on Astrobase's earlier commitment to invest ₹500 crore in Karnataka for a dedicated manufacturing facility in Bengaluru. That unit is set to house advanced additive manufacturing and fabrication infrastructure, non-destructive testing and quality inspection facilities, and engine and stage assembly capabilities — all in support of the company's Everest engine and AB220 medium-lift launch vehicle programme.

Taken together, the two investments bring Astrobase's publicly announced capital commitments across India to ₹1,300 crore, signalling a strategic push to build end-to-end domestic space launch capability.

Summit Context and State Investment Drive

The 31st CII Partnership Summit, held on 12–13 November 2026 in Visakhapatnam, is organised by the Confederation of Indian Industry (CII) in association with the Department for Promotion of Industry and Internal Trade (DPIIT) and hosted by the Andhra Pradesh government. The two-day event is expected to facilitate investment proposals worth up to ₹11 lakh crore and generate around 2.5 lakh jobs across sectors.

Astrobase's commitment is among the more strategically significant announcements at the summit, given the central government's push to open the space sector to private players following policy liberalisation in recent years.

With testing infrastructure nearly doubling and manufacturing capacity being built in parallel, the company's next milestones — including hot-fire test outcomes and AB220 development timelines — will determine whether India's private launch sector can close the gap with global peers.