Naidu, Goyal lay stone for India’s first Drone City and Space City

Visakhapatnam: Andhra Pradesh advanced its technology ambitions on Friday with the launch of two flagship projects, Drone City and Space City, unveiled by Chief Minister N Chandrababu Naidu and Union commerce and industry minister Piyush Goyal at the CII Partnership Summit in Visakhapatnam. The twin initiatives mark India’s first integrated drone and space-tech hubs and signal the State’s intent to establish early leadership in advanced manufacturing, aerospace and next-generation mobility.

Calling the moment “historic,” Naidu said Drone City and Space City would give Andhra Pradesh a decisive first-mover advantage in sectors poised for exponential global growth. He said the State would build a drone-traffic management system to enable services such as drone taxis, while Quantum Valley—scheduled for launch in January—will anchor AP’s push into quantum computing and green hydrogen technologies. “This ecosystem will shape the future of technology, skills and industry,” Naidu said, urging the Centre to provide additional support for scaling the projects.

Goyal praised Naidu for “reading the future accurately,” crediting him with recognizing the potential of IT in the 1990s and now positioning the State at the forefront of drones, space, AI and quantum. “The country’s first Drone City and Space City belong in Andhra Pradesh,” he said, adding that Naidu and Prime Minister Narendra Modi are working in close alignment on India’s long-term technological strategy.

Drone City will rise on 300 acres in Orvakallu, Kurnool district, designed as a comprehensive ecosystem for drone design, manufacturing, repairs, services and R&D. It will host advanced testing and certification labs, manufacture parks, and training facilities capable of producing 25,000 certified remote pilots.

The project is expected to generate more than 40,000 jobs. The State is offering a 20 per cent capital subsidy, 100 per cent SGST refund and support for 50 Centres of Excellence across AP.

India’s first Twin Space Cities will be established in Sri Sathya Sai and Tirupati districts, aimed at boosting private participation in the space sector. The cities will focus on satellite prototyping, component manufacturing, launch logistics and incubation of emerging space-tech firms. The hubs are expected to attract Rs 25,000 crore in investment and create 35,000 jobs over the next decade. Under AP Space Policy 4.0, the state has set aside Rs 100 crore for a dedicated Space Tech Fund.

MoUs were signed with firms including Blue Space, Eternal Exploration Guild, Algobotix, Akin Analytics, Senselmaze and Erface Industries.