Startup founder's post seeking factory land sparks bidding war among 3 states

Space technology startup Pixxel's co-founder was irked by the extreme difficulty of acquiring land for a satellite manufacturing facility on the outskirts of Bengaluru. Taking to X, Kshitij Khandelwal aired his frustration, saying the process had proved far more difficult than building the satellites themselves. What followed was a scramble by three states competing to attract high-tech investments -- Karnataka, Andhra Pradesh and Tamil Nadu-- to respond.

"Trying to get land for making a satellite factory in the outskirts of BLR (Bengaluru) has been way more difficult than actually making said satellites," Khandelwal wrote on Thursday, drawing attention to the challenges faced by the advanced technology startup in securing industrial land despite operating in one of India's leading technology hubs.

The comment quickly caught the attention of Karnataka's Industries Department. Karnataka Minister for Large and Medium Industries and Infrastructure Development M B Patil responded directly to the post, assuring government support for the company.

"My office will be in touch," Patil wrote.

Khandelwal acknowledged the minister's response and welcomed the intervention, replying, "Thank you, looking forward!"

While the Karnataka government moved swiftly to address the startup's concerns, the discussion soon evolved into an inter-state contest, with neighbouring Andhra Pradesh also stepping in with an offer to host the proposed satellite manufacturing facility.

Andhra Pradesh Minister for Information Technology, Electronics and Communications Nara Lokesh responded to Khandelwal's post by pitching Anantapur as an alternative destination for the project.

"Kshitij, there's a new investor-friendly destination on the outskirts of Bengaluru. It's called Anantapur," Lokesh wrote.

Positioning Andhra Pradesh as a preferred destination for aerospace and space-tech investments, Lokesh said the state government was creating specialised industrial ecosystems designed to eliminate the challenges entrepreneurs face while acquiring land and setting up operations.

"We're building Space Cities, aerospace parks and ready-to-go industrial ecosystems so founders can spend their time building satellites instead of hunting for land," he added.

The Andhra Pradesh minister further directed the Andhra Pradesh Economic Development Board (AP-EDB) to establish contact with Pixxel and explore potential investment opportunities in the state.

Soon, Tamil Nadu's Investment Promotion Agency also joined the heated discussion, pitching Hosur as an alternative destination. The agency highlighted the rapidly growing industrial city, located barely 40 km from Bengaluru, as an attractive option for the proposed satellite manufacturing facility.

"With its strategic location and strong manufacturing ecosystem, Hosur, Tamil Nadu, could be the ideal destination for your next phase of expansion," the agency responded.

Pixxel was founded in 2019 by Khandelwal and Awais Ahmed while they were students at BITS Pilani. Since then, it has grown into one of India's leading private space technology companies. The startup is focused on building a constellation of hyperspectral Earth-imaging satellites and has attracted significant investor interest as India's private space sector gains momentum.

As Chief Technology Officer, Khandelwal leads the company's technology development, overseeing satellite systems, hyperspectral imaging payloads, and the infrastructure required to process and analyse Earth-observation data. He has played a key role in developing Pixxel's Firefly satellite constellation.

According to company data available up to 2024, Pixxel has raised a total of USD 95 million across multiple funding rounds, making it one of the most well-funded private space-tech startups in India.

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