Andhra Pradesh-CII Partnership Summit: Astrobase Space to invest ₹800 crore in state, expand rocket testing facility to 360 acres

Astrobase Space Technologies, an Indian space technology company, will invest ₹800 crore in Andhra Pradesh to expand its rocket testing and launch vehicle development infrastructure, taking the total facility area to approximately 360 acres from the existing 22 acres. 

The company has signed a Memorandum of Understanding (MoU) with the Andhra Pradesh Economic Development Board to expand its rocket engine testing facility at Thimmasamudram in Sri Sathya Sai district. The expansion involves adding 339 acres to the existing facility and will strengthen the company's capabilities in rocket development, testing and validation, with a particular focus on next-generation reusable launch vehicle technologies. 

The MoU was signed on Thursday at the 31st CII Partnership Summit 2026 in Visakhapatnam by Andhra Pradesh Industries, Commerce and Food Processing Minister T.G. Bharath and Astrobase Space Technologies CEO and Co-founder Neeraj Khandelwal, in the presence of Chief Minister N. Chandrababu Naidu. 

Focus on reusable launch vehicle technology 

The expanded facility will house dedicated infrastructure for static hot-fire testing, stage development and testing, hop testing and reusability validation. It will enable the company to undertake critical testing programmes, including static hot-fire tests and stage-level hop tests, while strengthening its end-to-end launch vehicle development capabilities. 

The project is expected to generate approximately 500 direct jobs and 1,000 indirect employment opportunities. 

"We are grateful to the Government of Andhra Pradesh for its continued support and vision in strengthening India's private space ecosystem. The expansion of our existing rocket engine testing facility by an additional 339 acres, taking its total footprint to approximately 360 acres, marks a significant milestone in Astrobase's journey to build advanced space transportation capabilities from India," Khandelwal said. 

He said the expanded infrastructure would accelerate the development of reusable launch vehicle technologies and enable the company to undertake critical testing programmes. 

"India has already demonstrated remarkable prowess in space exploration and technology. The next frontier is to translate this strength into the ability to transport payloads to space more frequently, reliably and at scale. At Astrobase, we are working towards building the capability to transport 1,000 tonnes of payload to space annually from Indian soil," he added. 

Khandelwal said Andhra Pradesh would be an important partner in the company's efforts to develop advanced launch systems and strengthen India's position in the global space transportation ecosystem. 

Astrobase also plans ₹500 crore investment in Karnataka 

The Andhra Pradesh investment follows Astrobase's recent announcement of plans to invest ₹500 crore in Karnataka. The investment includes setting up a dedicated manufacturing facility across approximately 10 acres in Bengaluru. 

The proposed facility will house advanced additive manufacturing and fabrication infrastructure, non-destructive testing (NDT) and quality inspection facilities, along with engine and stage assembly and integration capabilities. These facilities will support the development of the company's Everest engine and AB220 medium-lift launch vehicle. 

The 31st CII Partnership Summit 2026, being held in Visakhapatnam on November 12–13, is organised by the Confederation of Indian Industry (CII) in association with the Department for Promotion of Industry and Internal Trade (DPIIT), and hosted by the Andhra Pradesh government. 

Themed 'Navigating the New World Order: Trade, Technology, Trust and Thought Leadership', the two-day summit is expected to facilitate investment deals worth up to ₹11 lakh crore, with the potential to generate approximately 2.5 lakh jobs.