Latest edition · Monday, 31 August 2026 · Bengaluru Mission desk active

Policy

Andhra Pradesh order allotted Skyroot 294.67 acres for Tirupati rocket plant

The September 2025 order set the land allotment rate at ₹5 lakh per acre and recorded a ₹400-crore proposal; Telugu360 reported Nara Lokesh citing the rounded 300-acre figure on August 25, 2026.

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Skyroot's Kalam-250 rocket motor firing horizontally on a test stand at ISRO's SDSC SHAR facility
Skyroot Aerospace’s Kalam-250 second-stage motor fires during a March 27, 2024 static test at ISRO’s SDSC SHAR facility in Sriharikota. This image does not show the Tirupati land parcel or proposed plant. Credit: ISRO.
294.67 acresexact allotment in G.O.Ms.No.155
₹5 lakhstate-set allotment rate per acre
₹400 croreproposed investment recorded in the order
300employment potential recorded in the order

An Andhra Pradesh government order allotted Skyroot Aerospace 294.67 acres in Tirupati district at ₹5 lakh per acre for an integrated rocket manufacturing, testing and storage facility. G.O.Ms.No.155, issued by the Industries and Commerce Department on September 6, 2025, gives the operative area. Its abstract uses 300 acres, and Telugu360 reported Nara Lokesh citing the same rounded figure on August 25, 2026.

The land is in Routhusuramala, B.S. Puram and Kottapalem villages. The order records Skyroot's proposed investment at ₹400 crore and employment potential at 300 people, along with requirements for 2,100 kilolitres of water and 70,000 kilovolt-amperes of electricity.

What the order approves

The State Investment Promotion Board considered the proposal on August 28, 2025 and recommended allocating 294.67 acres while instructing the Industries and Commerce Department to negotiate the land cost, according to the order. The government then set ₹5 lakh per acre for five major space-manufacturing proposals in the planned Space City and approved Skyroot's parcel at that rate.

The operative clause directs the state Director of Industries, Andhra Pradesh Industrial Infrastructure Corporation and Tirupati district collector to take necessary action. It does not record the date Skyroot took possession, a construction schedule or completion of the proposed facility. The allotment order therefore supports the land, rate and project terms, but not a claim that the plant is operating.

The wider Space Policy 4.0, issued on July 13, 2025, assigns the Tirupati Space City a manufacturing, integration and launch-support role near Kalahasti. It envisages component and propulsion manufacturing, subsystem assembly, testing and launch logistics, and says long-term lease options may be used for eligible firms. Skyroot's order says the government is allotting land but does not specify within its three pages whether the company's parcel is a sale or lease.

Why the 2025 decision is circulating again

Nara Lokesh, Andhra Pradesh's minister for human resources development and information technology, cited the Skyroot allocation during an August 25, 2026 address at a Suzlon event in Anantapuramu. Telugu360 reported him saying the state had given the company 300 acres at ₹5 lakh per acre and that Skyroot would build launch vehicles in Andhra Pradesh for launches from Sriharikota. A Press Information Bureau release confirms Lokesh delivered an English-language address at that event, but it does not reproduce the Skyroot remarks.

The wider Space City project had reached a public foundation-stone ceremony by November 14, 2025, when the Press Information Bureau said Union Commerce and Industry Minister Piyush Goyal and Chief Minister N. Chandrababu Naidu launched the state's Drone City and Space City projects virtually. That release refers to constructing a Space City near Sriharikota; it does not identify a Skyroot-specific construction milestone. No reviewed source establishes the current state of work on the 294.67-acre parcel.

The location is meant to connect manufacturing with India's main launch range. ISRO reported that Skyroot's Vikram-1 flew from Satish Dhawan Space Centre at Sriharikota on July 18, 2026, becoming the first orbital launch by a private Indian company from Indian soil. The July flight does not change the allotment date or show that the Tirupati facility has been built.

Reporting trail

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