A group of Hyderabad-based spacetech companies has asked the Telangana government to establish a dedicated “Space City” supported by common testing facilities, specialised infrastructure and an updated policy framework for private-sector space ventures.
The proposal was presented during a meeting between Telangana IT and Industries Minister D. Sridhar Babu and representatives of 14 spacetech companies. Participating companies included Skyroot Aerospace, Dhruva Space, Constelli, TakeMe2Space, Cosmoserve Space, Abyom SpaceTech & Defence and Sanyark Space, covering launch vehicles, satellites, orbital infrastructure, space-debris management and other advanced engineering areas.
The companies have sought infrastructure that can be shared by startups developing capital-intensive hardware. Chiranjeevi Phanindra, founder and chief executive of Cosmoserve Space, identified common testing facilities, a dedicated space park and a stronger state space policy as key requirements. The government has said the proposals are under consideration and that industry inputs will be incorporated into its plans.
A shared facility could address one of the structural constraints facing early-stage space companies: access to expensive equipment for environmental qualification, component testing, fabrication, assembly and systems integration. Telangana’s existing SpaceTech Framework already envisages a pay-per-use model under which companies can access fabrication and testing equipment, skilled personnel and underutilised infrastructure held by universities, research institutions and government-supported facilities.
Hyderabad has an established aerospace and defence manufacturing base alongside a growing private space cluster. Telangana’s policy framework states that entities based in the state contributed about 30% of the components used in India’s Mars Orbiter Mission. The city is also home to Skyroot Aerospace and Dhruva Space, two of the country’s most prominent private space companies, as well as a wider supplier network spanning electronics, propulsion, satellite subsystems and precision manufacturing.
The government is positioning space technology as part of a broader transition from services-led growth towards frontier engineering, product development and advanced manufacturing. Sridhar Babu said the participating companies were working across rockets, satellites, orbital systems and debris-removal technologies. The state wants to consolidate those capabilities as part of its ambition to build Hyderabad into a leading Asian deeptech hub and support Telangana’s longer-term trillion-dollar economy target.
The discussions remain at the proposal stage. No land allocation, investment amount, project schedule or implementing authority for the proposed Space City has yet been announced. The next substantive step would involve translating the industry submissions into a formal development plan, including the governance and commercial-access model for any shared facilities.
