Andhra Pradesh Chief Minister N Chandrababu Naidu and Union Commerce Minister Piyush Goyal on Friday virtually laid the foundation stone for the proposed Drone City and Space City projects during the 30th CII Partnership Summit here.
Naidu described the foundation-laying as a “historic” development.
“Laying the foundation for Drone City and Space City is historic. We will continue to take first-mover advantage,” he said, urging the Centre to extend further support to the projects.
The chief minister said the state would introduce drone taxis and stressed the need for a drone traffic control system.
He added that 'Quantum Valley' would be launched in January 2026 and reiterated the government’s plan to develop Andhra Pradesh into a Green Hydrogen Valley.
During the event, Andhra Pradesh Economic Development Board (APEDB) signed a Memorandum of Understanding (MoU) with aerpace Industries Limited for participation in the development of India’s First Drone City in the Kurnool region.
As a key technology partner, aerpace will focus on developing unmanned defence systems and heavy-lift electric VTOL (Vertical Take-Off and Landing) platforms, while also contributing to the creation of critical safety frameworks and testing standards for the ecosystem.
Goyal said the use of drones was increasing rapidly and praised Naidu for recognising the trend and conceptualising Drone City.
“India’s First Drone City represents a landmark opportunity for the nation to build sovereign capability in aerospace, defence, and unmanned systems. We are honoured to be part of this initiative and remain committed to contributing meaningfully to India’s innovation landscape," said Ravi Soni, Executive Director, aerpace Industries Limited.
Drone City, planned on a 300-acre site in Orvakal in Kurnool district, will host drone design, manufacturing, services and R&D facilities, according to a press release.
It will also include testing and certification centres and infrastructure to train 25,000 remote drone pilots.
Twin Space Cities will be established in Sri Sathyasai and Tirupati districts to strengthen private participation in the space sector.
The facilities will produce satellite prototypes, incubate space-tech startups, manufacture satellite components and provide launch logistics support.
The state estimates that the Space Cities will attract investments worth Rs 25,000 crore and create 35,000 jobs over 10 years.
The Andhra Pradesh government later signed several agreements with private companies related to the Space City projects.
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