Andhra Pradesh’s upcoming Space Policy 4.0 aims to attract ₹25,000 crore in investments.

A meeting was held in Amravati on Thursday to review the final draft policy. Chief Minister N Chandrababu Naidu directed officials to finalise the new policy with a goal of attracting ₹25,000 crore in investments and generating 5,000 direct and 30,000 indirect employment. 

The CM has approved the development of Space Cities in Lepakshi and Tirupati, while also laying out strategic goals for the sector, from 2025 to 2035. 

A technical committee will be formed on the policy-related matters and to suggest modalities of common infrastructure based on a plug-and-play model. An integration of electronics, space, aerospace, defence and drone technologies was key to the broader innovation strategy of the State, Naidu said. 

Subsidy categories

CM Naidu instructed officials to offer competitive investment incentives to attract companies. Investment categories are to be classified as micro (₹1-2.5 crore), small (₹2.5-₹25 crore), medium (₹25-₹125 crore), large (₹125-₹500 crore), and mega (₹500+ crore). 

Proposals were put forth to provide subsidies ranging from 25 per cent to 45 per cent, with special incentives for women, BC, SC, ST, minority, and differently-abled entrepreneurs also under discussion.  

The new policy envisions two dedicated space cities. Lepakshi Space City, spread across 500 acres, will focus on design and development. It will house institutions for R&D, space start-ups, innovation ecosystems, and services related to space applications. The Tirupati Space City will serve as a hub for manufacturing and launch logistics.

Honorary Space Technology Advisor to the Government of Andhra Pradesh and former ISRO Chairman, S Somanath, said the Centre was launching several key projects under the Space Vision Policy-2047. Private players such as Starlink, SpaceX, and Blue Origin, would also have a role in transforming the sector globally, according to a release.

Published on June 26, 2025