Andhra Pradesh Launches Space Policy 4.0, Targets ₹25,000 Cr Investment with Twin Space Cities

The Government of Andhra Pradesh has unveiled Space Policy 4.0, a forward-looking framework aimed at transforming the state into a national hub for space technology and manufacturing. The policy outlines an ambitious roadmap to attract ₹25,000 crore in investments over the next decade and to create two integrated space cities—Lepakshi and Tirupati—as engines of growth in India’s space sector.

Approved by the state cabinet over the weekend, the policy envisions Andhra Pradesh as a “progressive, knowledge-driven, and tech-powered” state, positioning space as a core vertical for industrial transformation.

Twin Space Cities: Lepakshi & Tirupati

Capitalizing on its geographic advantage as home to India’s only operational spaceport at Sriharikota, Andhra Pradesh plans to develop:

• Lepakshi Space Innovation City: Positioned as India’s leading R&D and innovation hub for upstream and downstream space technologies.

• Tirupati Space City: Located in Routhusurmala, Chittoor district, this hub will focus on manufacturing, including launch vehicle assembly, satellite integration, and electronics systems for advanced missions.

The state has allocated 30,000 acres in Lepakshi and 2,800 acres in Tirupati for these developments.

Massive Job Creation & Startup Support

By 2035, the policy aims to create 5,000 direct and 30,000 indirect jobs, while supporting global partnerships and private sector participation in space tech.

To promote innovation, Andhra Pradesh will roll out:

• A ₹100 crore SpaceTech Fund for shared infrastructure

• A ₹1,000 crore venture capital fund, registered as an AIF with SEBI

• MSME-focused subsidies up to 45% of fixed capital investment, and up to 75% overall support under the MEDP 4.0 scheme

Strategic Alignment with ISRO and National Goals

The policy aligns with ISRO’s future missions including Launch Vehicle Mark-3 (LVM-3) and the Next Generation Launch Vehicle (NGLV). It calls for licensed production of rocket components such as aluminium propellant tanks and semi-cryogenic engines, to meet India’s satellite launch demand for the next 25 years.

A direct logistics corridor with 6-lane road access to Sriharikota is also planned, enhancing the operational efficiency of both space cities.

Infrastructure & Fiscal Incentives

The policy includes:

• Land cost rebates

• SGST reimbursements

• Top-ups on central PLI schemes

• 50% cost reimbursement for R&D labs, capped at ₹3 crore

Vision 2040: A New Frontier for India’s Space Race

Space Policy 4.0 is designed to support India’s long-term space roadmap—Chandrayaan-4 (2027), Bharatiya Antariksh Station (BAS, 2035), and India’s first crewed Moon mission (2040).

“Space City is envisioned as a one-stop hub for the design, assembly, and launch of satellites and vehicles,” the policy presentation noted.

With this move, Andhra Pradesh is not only aligning with national ambitions but also staking its claim as the epicenter of India’s new space economy.