Is Andhra Pradesh Set to Create Two Dedicated Space Cities?
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Synopsis
Andhra Pradesh is on the verge of transforming its space sector by launching two dedicated space cities. These developments promise to enhance technology, R&D, and manufacturing while creating thousands of jobs and attracting substantial investments.
Key Takeaways
- Andhra Pradesh is developing two space cities.
- Investment target of Rs 25,000 crore.
- Creation of 5,000 direct jobs and 30,000 indirect jobs.
- Subsidies of 25% to 45% to attract businesses.
- Focus on integrating various technologies in the space sector.
Amaravati, June 26 (NationPress) The Andhra Pradesh government is embarking on an ambitious initiative to construct two specialized space cities aimed at advancing technology, research and development, manufacturing, and logistics.
On Thursday, Chief Minister N. Chandrababu Naidu signaled the green light for the establishment of Lepakshi Space City and Tirupati Space City.
Lepakshi Space City, covering an area of 500 acres, will concentrate on design and development, hosting institutions dedicated to R&D, space startups, innovation ecosystems, and services related to space applications.
Meanwhile, Tirupati Space City is envisioned as a nucleus for manufacturing and launch logistics. Planned facilities will include launch vehicle assembly, satellite and payload assembly, as well as manufacturing of mechanical components and electronics-avionics.
The strategic geographic positioning of these cities, with Tirupati near both Chennai and Sriharikota, and Lepakshi close to Bengaluru, offers significant advantages. The Chief Minister has also advocated for enhanced road connectivity from Tirupati Space City to Sriharikota.
He instructed officials to finalize Space Policy 4.0, aspiring to attract investments totaling Rs 25,000 crore. This policy aims to create direct employment for 5,000 individuals and indirect opportunities for approximately 30,000 people.
During an extensive review meeting, he emphasized the necessity of involving educational institutions to engage students and stimulate interest in space technologies.
He directed the formation of a technical committee and the establishment of common infrastructure adhering to a plug-and-play model. Leading firms in communication technology have been invited to invest in the state.
The Chief Minister further underscored the importance of integrating electronics, space, aerospace, defense, and drone technologies into the state’s broader innovation strategy.
Participating via video conference, Honorary Space Technology Advisor to the Andhra Pradesh government and former ISRO Chairman S. Somanath remarked that the Indian government is launching several key initiatives under the Space Vision Policy-2047. He highlighted the transformative role of private entities like Starlink, SpaceX, and Blue Origin in the global space sector, affirming that the future is undoubtedly space-oriented.
The Chief Minister urged officials to present more competitive investment incentives to attract companies to the state’s space sector. Investment categories have been delineated as Micro (Rs 1-2.5 crore), Small (Rs 2.5-Rs 25 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%, along with special incentives for women, BC, SC, ST, minority, and differently-abled entrepreneurs, are currently under consideration.
At present, India commands only 2% of the global space economy, with a target to attract $44 billion in space investments by 2033. India’s Space Policy-2023 allows for 100% foreign direct investment in the sector.
Under the India Space Vision-2047, objectives 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.
Point of View
The establishment of dedicated space cities in Andhra Pradesh represents a significant step towards fostering innovation and economic growth in India. It showcases the state's commitment to becoming a leader in the space sector. With strategic investments and a focus on educational engagement, this initiative could position India as a formidable player in the global space economy.
NationPress
26/06/2025
Frequently Asked Questions
What are the main objectives of the space cities?
The primary objectives are to enhance technology, R&D, manufacturing, and logistics related to space applications.
How much investment is Andhra Pradesh aiming to attract?
The state aims to attract investments totaling Rs 25,000 crore.
What employment opportunities will arise from this initiative?
The project is expected to generate direct employment for 5,000 individuals and indirect opportunities for nearly 30,000 people.
What incentives are being offered to attract investments?
Incentives include subsidies ranging from 25% to 45%, with special considerations for women and marginalized communities.
How does this initiative align with India's broader space goals?
This initiative aligns with India's Space Vision-2047, which includes ambitious projects like satellite manufacturing and human spaceflight programs.
