AP government to launch first phase of Space City project soon in Tirupati

Vijayawada: The state govt plans to launch the first phase of its mega ‘Space City' project, spread across 2,800 acres in Tirupati district, within the next two months. The city is designed to position the state as a hub for space research, satellite manufacturing, and advanced aerospace technologies. The mega facility is coming up in Buchinaidu Kandriga mandal of the district.The project aligns with the Centre's space sector reforms that encourage greater private sector participation. In the first phase, core industrial activities will be concentrated on approximately 570 acres, with an estimated investment of Rs 140 crore. The remaining land will be utilised for supporting infrastructure, including residential zones, institutional campuses, logistics parks, internal road networks, high-speed digital connectivity, reliable power and water supply systems, and extensive green buffers.
The Space City will house satellite assembly and integration units, testing and calibration laboratories, research and development centres, incubation hubs for space tech startups, component fabrication facilities, and allied industries such as data analytics, defence applications, precision engineering, and advanced electronics. Officials highlighted the location's strategic advantages, as it is close to the Satish Dhawan Space Centre at Sriharikota, Tirupati international airport, national highways, and key ports, making it highly suitable for aerospace and space-related operations. The project is expected to attract significant private investments — potentially contributing to the state's broader target of Rs 25,000 crore in space sector inflows over the coming years — and generate thousands of direct and indirect high-skilled jobs for engineers, scientists, technicians, data specialists, and the support workforce. It will also spur growth in ancillary sectors such as software development, AI applications for space, and defence technologies. The govt has assured transparent land pooling and acquisition processes, fair compensation, and rehabilitation packages for affected landowners. Preliminary surveys, environmental assessments, and consultations with local stakeholders were already completed. The development complements other efforts of the govt, including proposed satellite launch facilities near Sriharikota, and collaborations with private players such as Skyroot Aerospace. By creating a comprehensive ecosystem for innovation, startups, and commercial space activities, the Space City is likely to strengthen India's global standing in the fast-growing space economy while firmly placing Andhra Pradesh on the map for advanced manufacturing and high-technology clusters.