Andhra Pradesh Aerospace and Defence Policy (2025-30)
The Andhra Pradesh government has introduced significant incentives for developing aerospace and defence clusters in the state, aiming to make Andhra Pradesh a global hub for defence manufacturing and R&D.
Key Features and Incentives
- Subsidised Land: Investors are offered subsidised land, with the first five anchor investors receiving land at 25% of the gross selling price and non-anchor investors at 10%.
- Technology Transfer Subsidy:
- The state will bear 50% of technology acquisition costs (up to ₹1 crore) for anchor and mega investors.
- A ₹100 crore annual corpus is proposed for medium and small enterprises to cover 50% of technology costs, disbursed over four years.
- Investment Targets: The policy aims to attract investments ranging from ₹50,000 crore to ₹1 lakh crore, with a minimum target of ₹25,000 crore.
- Skill Development Assistance: Tailor-made benefits for investors investing over ₹500 crore.
- Single-window Clearance: A dedicated body will facilitate aerospace and defence investments, with a cell promoting exports.
Proposed Clusters
- Visakhapatnam-Srikakulam: A naval cluster spanning 3,000 acres.
- Jaggaiahpet-Donakonda: A missile and ammunition cluster on 3,000-4,000 acres.
- Kurnool-Orvakal: An unmanned systems cluster covering 4,000 acres.
- Lepakshi-Madakasira: An aerospace and electronics cluster on 4,000-5,000 acres.
- Tirupati: An R&D hub.
Connectivity and Logistics
The clusters are strategically mapped to existing airports and logistics corridors, including Bengaluru, Hyderabad, Chennai, and Kolkata, to ensure seamless operations and connectivity.
