AP plans ₹25,000 crore space manufacturing ecosystem, secures major investments in rocket technology

The ambitious initiative seeks to establish an integrated ecosystem for rocket engine manufacturing, propulsion systems, satellite technologies, research and development, and advanced testing facilities. It is expected to create opportunities for private space companies, startups and micro, small and medium enterprises (MSMEs).

The initiative received fresh momentum at the 31st CII Partnership Summit held in Visakhapatnam on November 12 and 13, where Andhra Pradesh signed several investment agreements involving leading aerospace and space technology companies.

Among the major investors, Astrobase Space Technologies has proposed an ₹800 crore expansion of its rocket engine testing facility at Thimmasamudram in Sri Sathya Sai district. The project will expand testing infrastructure to approximately 360 acres and is expected to generate 500 direct jobs by December 2030.

Bellatrix Aerospace plans to establish an advanced satellite and propulsion development centre at Lepakshi with an investment of ₹550 crore, while Agnikul Cosmos has proposed a ₹510 crore facility in Tirupati district for rocket-related manufacturing and orbital data centre technologies.

Hathor Rockets has announced a ₹250 crore investment in a rocket engine manufacturing, testing and research facility at Routhusuramala in Tirupati district. Skyroot Aerospace is another major participant, with approximately 295 acres allotted for its proposed ₹400 crore project.

Andhra Pradesh IT and Electronics Minister Nara Lokesh has emphasised that the government's strategy extends beyond attracting individual companies. The objective is to develop a comprehensive industrial supply chain in which rocket manufacturers, component suppliers, testing organisations and research institutions operate within a connected ecosystem.

The state's Space Policy 4.0 envisages ₹25,000 crore in investments over ten years, generating 5,000 direct and 30,000 indirect employment opportunities. A ₹100 crore SpaceTech Fund is also part of the policy framework to encourage innovation and entrepreneurship.

The proposed development comes amid increasing competition among Andhra Pradesh, Telangana, Karnataka, Tamil Nadu and Gujarat to attract investments in India's rapidly expanding private space sector.

With Sriharikota already serving as India's principal satellite launch centre, Andhra Pradesh hopes to capitalise on its geographical advantage and industrial infrastructure to establish a significant presence in the global space technology supply chain.

The ₹25,000 crore figure represents the state's long-term investment target rather than funds already committed or spent. The latest investment agreements mark an important step towards translating that ambition into manufacturing facilities, technological capabilities and employment opportunities.