In a strategic move to position itself as a hub for space innovation, the Andhra Pradesh government has approved its Space Policy 4.0, targeting ₹25,000 Cr (~$3 Bn) in investments over the next decade. The policy aims to create 5,000 direct and 30,000 indirect jobs in high-tech and space-related sectors.
The new policy, which will remain active for five years, sets the stage for the development of two space cities—one in Sri Satya Sai District, focused on design and R&D infrastructure, and another in Tirupati District, dedicated to satellite and launch vehicle manufacturing.
To drive execution, the government will establish a dedicated corporation responsible for infrastructure development, startup funding, investment facilitation, and coordination with central government bodies.
Support for Startups and Enterprises
The policy outlines a suite of financial incentives:
- Spacetech startups will be eligible for an initial grant of ₹2 Lakh, with a maximum cap of ₹15 Lakh.
- Seed funding of up to ₹1 Cr will be provided via the Andhra Pradesh Innovation & Startup Policy 4.0 and the Ratan Tata Innovation Hub.
- The government will also host hackathons and innovation challenges to foster startup engagement.
MSME and Large Enterprise Incentives
The policy includes strong backing for MSMEs and large enterprises:
- MSMEs can claim 75% fixed capital reimbursement, capped at ₹2 Cr (micro), ₹9 Cr (small), and ₹15 Cr (medium).
- Technology transfer subsidies of up to ₹1 Cr are also available.
- Large enterprises investing ₹125–500 Cr and above will receive a 15% capital subsidy, capped at ₹75 Cr, along with additional perks like:
- Stamp duty reimbursement
- SGST refunds
- Decarbonization support
- Land cost rebates
These incentives are in addition to benefits under central PLI schemes.
Strategic Vision
The new policy is part of Andhra Pradesh’s broader ambition to build a world-class startup ecosystem. Through the Innovation & Startup Policy 4.0, the state aims to nurture 25,000 startups and produce 10 unicorns.
By focusing on spacetech parks, advanced R&D labs, and end-to-end satellite infrastructure, Andhra Pradesh is aligning itself with India’s fast-growing private space sector and hopes to attract both foreign and domestic investment at scale.
