AP News: Andhra Pradesh Announces ₹3,000 Cr Investment in Space and Defence Projects

CopilotPerplexityChatGPTDeepSeekGoogleGrokGemini

Andhra Pradesh has announced two large projects to strengthen its position in aerospace and defence manufacturing. A Space City worth ₹400 crore will be built in Tirupati, while two Defence Hubs worth ₹2,600 crore will come up in Madakasira, Anantapur district. Together, these projects represent investments of around ₹3,000 crore.

Skyroot Aerospace Leads Space City Project

The Space City in Tirupati will be set up on 300 acres with Skyroot Aerospace as the lead investor. Skyroot, founded by former ISRO scientists, plans to create a facility for rocket manufacturing, assembly, testing, and storage. The site’s proximity to the Satish Dhawan Space Centre at Sriharikota makes it a strategic choice for satellite launch operations.

Defence Manufacturing in Madakasira

Two major defence projects will be developed in Madakasira.

• Kalyani Strategic Systems Ltd (KSSL), a subsidiary of Bharat Forge, will build a Defence Energetics Manufacturing Complex on about 1,000 acres. It will focus on producing ammunition, explosives, and propellants.
• HFCL Ltd. will set up another facility on 1,000 acres to manufacture artillery shells, TNT, and hand grenades. Together, these hubs are expected to create a large defence ecosystem in the region.

Earlier this year, the state government introduced the Aerospace and Defence Policy, offering incentives such as subsidised land, support for technology transfer, and special benefits for investors bringing projects worth more than ₹500 crore.

Chief Minister N. Chandrababu Naidu has set a target of attracting ₹50,000 crore to ₹1 lakh crore in aerospace and defence investments over the next five years. The Space City and Defence Hubs are expected to serve as anchor projects, positioning Andhra Pradesh as one of India’s fastest-growing hubs in advanced manufacturing.