Amaravati: The Andhra Pradesh government has launched a comprehensive Aerospace and Defence Policy (2025–30), offering a range of incentives to attract large-scale investments.
Approved by the Cabinet under the leadership of Chief Minister N Chandrababu Naidu, the policy focuses on developing five specialised aerospace and defence clusters across the state.
The proposed hubs include a naval cluster in Visakhapatnam-Srikakulam, a missile and ammunition cluster in Jaggaiahpet-Donakonda, an unmanned systems cluster in Kurnool-Orvakal, an aerospace and electronics cluster in Lepakshi-Madakasira, and a research and development hub in Tirupati. These clusters, spread across 3,000 to 5,000 acres each, are strategically aligned with key airports and logistics corridors for seamless connectivity.
To attract investment ranging from Rs 50,000 crore to Rs 1 lakh crore, the state aims to initially secure at least Rs 25,000 crore. Anchor investors in each cluster will receive land at 25 per cent of the gross selling price, while other investors will be offered land at a subsidised 10 per cent.
One of the standout features of the policy is the technology transfer subsidy. The government will cover 50 per cent of technology acquisition costs up to Rs 1 crore for anchor and mega investors. A dedicated Rs 100 crore annual corpus has also been proposed to support MSMEs, covering similar technology costs in phased disbursements.
Additionally, the policy includes tailor-made incentives for investors putting in more than Rs 500 crore, skill development support, and a single-window clearance system. A special body will be formed to streamline investment facilitation and export promotion for aerospace and defence products from the state.
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