He also proposed the establishment of India’s third defence industrial corridor in Andhra Pradesh, after Uttar Pradesh and Tamil Nadu, to create an ecosystem for advanced military equipment production.
Published May 24, 2025 | 4:22 PM ⚊ Updated May 24, 2025 | 4:22 PM
Chandrababu Naidu's push for defence and space sectors. (X)
Synopsis: Andhra Pradesh CM Chandrababu Naidu is advancing plans to make the state a hub for defence and space technology, proposing industrial corridors, missile and drone clusters, and Space Cities near SHAR and Lepakshi. Backed by top advisors from DRDO and ISRO, and ₹4.95 lakh crore in approved projects, the state is accelerating industrial growth and green energy leadership.
Leveraging the state’s strategic coastal location, robust industrial infrastructure, and proactive policies, Andhra Pradesh is positioning itself as a hub for defence manufacturing and space technology.
Armed with proposals for defence industrial corridors, specialized clusters, and futuristic Space Cities, Chief Minister N Chandrababu Naidu is seeking Union government’s help to realise his dream of securing state’s high-tech future.
Naidu, on Friday, May 23, made a representation to Union Defence Minister Rajnath Singh in New Delhi where he pitched Andhra Pradesh as a national hub for defence manufacturing. He told the defence minister that Andhra Pradesh was ready to support indigenous defence programmes.
He also proposed the establishment of India’s third defence industrial corridor in Andhra Pradesh, after Uttar Pradesh and Tamil Nadu, to create an ecosystem for advanced military equipment production.
Naidu wants to relocate production facilities of Hindustan Aeronautics Limited (HAL) for the Advanced Medium Combat Aircraft (AMCA) and Light Combat Aircraft (LCA) from Karnataka to Andhra Pradesh. To sweeten the deal, he offered land near Bengaluru airport for HAL’s AMCA facility. “Andhra Pradesh is ready to lead India’s defence manufacturing revolution,” Naidu said, stressing the state’s strategic location and industrial strength.
Naidu proposed converting 6,000 acres in the Jaggayyapeta–Dolakonda cluster into a missile and ammunition protection centre.
In the Sriharikota region, a 2,000-acre cluster is proposed for private satellite manufacturing and launch facilities, and in the Lepakshi–Madakasira cluster, he proposed centres for military and civil aircraft, and electronics manufacturing.
In Visakhapatnam–Anakapalli, naval experimentation hubs are planned, and in Kurnool–Orvakal, military drones, robotics, and advanced defence components manufacturing.
He also proposed a DRDO Centre of Excellence at IIT Tirupati. Naidu said Rajnath Singh responded positively to these proposals.
To bolster this vision, the Andhra Pradesh government had already appointed former Defence Research and Development Organisation (DRDO) Chairman G Satheesh Reddy as Honorary Advisor for Aerospace and Defence Manufacturing in April 2025.
Reddy is tasked with identifying suitable locations for defence clusters, with a focus on developing 4,000 acres in Orvakal, Kurnool district, for military drones, robotics, and advanced defence components. These clusters aim to attract global and domestic defence manufacturers, fostering innovation and job creation.
Andhra Pradesh achieved a significant milestone on 2 May, when Prime Minister Narendra Modi laid the foundation stone for a missile testing range at Nagayalanka in Krishna district during the relaunch of Amaravati works.
This facility is expected to enhance India’s defence testing capabilities and cement Andhra’s role in the sector.
Running parallel to Andhra’s defence ambitions, the state is eyeing pole position in India’s space sector. During a meeting with Jitendra Singh, Minister of State for Science and Technology and Earth Sciences, on Friday, Naidu submitted a comprehensive proposal to develop two Space Cities.
One is near ISRO’s Satish Dhawan Space Centre (SHAR) in Sriharikota which will act as a hub for satellite production and launch vehicle development, leveraging proximity to India’s premier spaceport. Another hub will come up near Lepakshi for promoting industry collaboration and space technology innovation, aimed at fostering public-private partnerships.
These Space Cities aim to make the best use of Andhra Pradesh’s strategic location and industrial ecosystem to support the Indian Space Research Organisation (ISRO) and private space ventures.
Naidu said that Andhra Pradesh was willing to support Indian space initiatives, from satellite manufacturing to cutting-edge R and D. He said: “With a strategic location, industrial strength and future ready infrastructure, Andhra Pradesh is fully committed to advancing India’s space sector. We seek the Union government’s recognition and partnership in this transformative journey.”
The chief minister apprised the minister of the appointment of Dr S Somnath, former ISRO chairman, as the honorary advisor on space Technology to the state government. His guidance will steer the state’s efforts building a globally competitive space ecosystem, he said.
Chandrababu Naidu’s push for defence and space investments is viewed as part of a broader economic strategy for rapid industrialisation.
The State Investment Promotion Board (SIPB), chaired by Naidu, has been approving high-value projects. In its sixth and the latest meeting recently, the SIPB cleared 19 projects worth ₹33,720 crore, which are expected to create over 34,000 jobs.
Since the TDP-led NDA government assumed power in June 2024, 76 projects with a total investment of ₹4,95,796 crore have been approved.
The state has also emerged as a leader in green energy, attracting ₹4 trillion in renewable energy investments over eight months, overtaking competitors like Gujarat and Tamil Nadu.
Investments in electronics, such as LG Electronics’ ₹5,000 crore smart appliance facility at Sri City, are seen as an attempt to create an ecosystem for defence and space manufacturing.
(Edited by Sumavarsha)