As Karnataka Cancels Land Acquisition, Andhra Minister Nara Lokesh Proposes For Aerospace Park

Following the Karnataka government's decision to halt the acquisition of 1,777 acres of fertile farmland for a proposed aerospace park near Bengaluru, Andhra Pradesh IT Minister Nara Lokesh swiftly invited the aerospace industry to consider Andhra Pradesh as an alternative destination. Lokesh used this opportunity to highlight Andhra Pradesh's attractive aerospace policy, best-in-class incentives, and over 8,000 acres of ready-to-use land situated just outside Bengaluru.

Andhra Pradesh's Aerospace and Defence Policy (2025-30) aims to position the state as a leading national and global hub for aerospace and defence manufacturing and R&D. The policy includes the development of specialized clusters across the state, mapped to major airports and logistic corridors for connectivity. Key incentives and features offered under the policy include:

• Subsidized land: Anchor investors receive land at around 25% of the gross selling price, while non-anchor investors pay just 10%.
• Technology transfer subsidy: Financial support for startups and large investors to facilitate acquisition and implementation of new technologies.
• Targeted clusters: The policy plans for five dedicated aerospace and defence clusters, each focused on a vertical (e.g., naval, missiles, electronics, unmanned systems).
• Investment targets: The government aims to attract investments of ₹50,000 crore to ₹1 lakh crore, with a target of at least ₹25,000 crore during the policy period.

Lokesh's pitch emphasizes Andhra Pradesh's readiness to host aerospace firms immediately, contrasting with Karnataka's shift to a more inclusive, farmer-friendly approach that preserves fertile agricultural land and compensates only willing sellers. Karnataka's move has been seen as a victory for local farmers and a signal of its commitment to balancing industrial growth with community welfare.