Important among the projects are the propellant making-cum-weapon systems integration facility in Prakasam district and defence equipment (underwater weapons and torpedoes) manufacturing, assembly and testing facility in Anakapalli district.
| Photo Credit: Representational
The Aerospace & Defence (A&D) manufacturing sector in Andhra Pradesh is set to receive a big boost from the establishment of four major defence production units by Bharat Dynamics Limited (BDL), HFCL Ltd., and Kalyani Strategic Systems Ltd., with an aggregate investment of nearly ₹3,730 crore.
Foundation for these projects, facilitated under the A&D Policy – 2025-30, whose objectives are to identify anchor industries for A&D clusters, attract new investments worth ₹1 lakh crore, develop sub-sector focused MSME parks in hub-and-spoke model, and create employment opportunities for one lakh people in five years, is going to be laid soon.
A total of six A&D clusters have been envisaged in the State, namely the Naval Cluster in Visakhapatnam – Srikakulam area, a missile and ammunition cluster at Jaggaiahpet, unmanned systems cluster at Orvakal in Kurnool district, aerospace and electronics cluster at Lepakshi–Madakasira, and defence R&D and aircraft component clusters in Tirupati and Donakonda.
Space City
Besides, a Space City has been proposed to be developed at Rothusuramala in Tirupati district, for which the APIIC has already invited tenders, initially spanning 500 acres, including for a startup area of 140 acres. An entire space ecosystem is planned to be created here.
The most important ones among them are the BDL’s propellant making-cum-weapon systems integration facility coming up on a 1,400-acre land parcel at Donakonda in Prakasam district with an investment of ₹1,200 crore, and defence equipment (underwater weapons and torpedoes) manufacturing, assembly and testing facility in Anakapalli district with ₹490 crore investment.
A defence energetics unit, comprising ammunition filling, gun propellant, warhead and energetics complexes with provision for future expansion into missile manufacturing by Kalyani Strategic Systems Ltd., which is a wholly-owned subsidiary of Bharat Forge Limited in Sri Sathya Sai district with a ₹1,000 crore investment, and an artillery ammunition shell and multimode hand grenade manufacturing and TNT filling unit by HFCL Limited at Madakasira in the same district (Sri Sathya Sai) with an investment of ₹1,040 crore are the other major projects in the offing.
According to official sources, external infrastructure for the BDL’s upcoming facility at Donakonda is in the process of being created by the APIIC, which is also preparing a master plan for the entire cluster that includes improvement of the existing air strip there in coordination with AP Airports Development Corporation.
Published – December 03, 2025 07:27 pm IST
