Officials indicated that the development will be done through a PPP framework, inviting domestic and international private investors to co-develop industrial, hospitality

Metro India News | AMARAVATI

In a bold push to position Andhra Pradesh as a major player in India’s aerospace and defense manufacturing ecosystem, the state government is moving ahead with plans to develop a sprawling Aerospace and Defense Hub near Lepakshi and Hindupur—strategically located close to Kempegowda International Airport, Bengaluru.

The ambitious project envisions the acquisition of 10,000 acres of land for a multipurpose industrial and recreational zone, to be developed under the Public-Private Partnership (PPP) model. As per initial plans, the hub will include a Defense and Aerospace Park, luxury hotels and resorts, and amusement and theme parks, making it both an economic and tourism magnet for the Rayalaseema region.

Government sources confirmed that while the Andhra Pradesh Industrial Infrastructure Corporation (APIIC)already holds about 10,000 acres in the area, the land is currently under the Enforcement Directorate’s (ED) attachment due to legacy financial irregularities. The state is now awaiting legal clearance to proceed with the integration or alternative acquisition strategy.

The proximity to Bengaluru, India’s Silicon and aerospace capital, gives the proposed Lepakshi-Hindupur hub a distinct logistical and industrial advantage. “This corridor has the potential to become a southern gateway for India’s aerospace and defense manufacturing sector,” said a senior APIIC official. “With Bengaluru’s research institutions and supply chains just across the border, Andhra can leverage its land and policy strengths to attract top-tier investments.”

Chief Minister N. Chandrababu Naidu has long championed regional development through decentralization and sector-focused growth hubs. This project aligns with his broader economic strategy to transform backward regions like Rayalaseema into high-tech growth engines.

Officials indicated that the development will be done through a PPP framework, inviting domestic and international private investors to co-develop industrial, hospitality, and entertainment infrastructure. The Defense and Aerospace Park component is expected to attract global manufacturers, avionics companies, and component suppliers under the Make in India and Atma Nirbhar Bharat initiatives.

The fate of the existing APIIC land remains a significant hurdle. The ED had attached the land during the YSRCP regime in connection with alleged financial mismanagement. The current government is exploring legal avenues to resolve the issue or proceed with parallel acquisition efforts for a clean launch. If executed as envisioned, the Lepakshi-Hindupur hub could emerge as one of South India’s most transformative industrial corridors—blending high-tech defense manufacturing with world-class lifestyle and tourism infrastructure, and rewriting the economic narrative of Andhra’s southern belt.