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Karnataka, Andhra Pradesh in tug-of-war over HAL expansion plans

Karnataka leaders have reacted strongly to Andhra Pradesh CM Chandrababu Naidu’s proposal for a new HAL unit, insisting Bengaluru's defence infrastructure is irreplaceable. Naidu has offered land near the border, but officials stress no existing HAL facilities will be moved.

News Arena Network - Bengaluru - UPDATED: May 28, 2025, 02:39 PM - 2 min read

An AMCA aircraft on display, developed at HAL’s Bengaluru unit, central to India’s stealth fighter programme and Karnataka’s aerospace pride.


The Karnataka government has firmly refuted any claims suggesting that the Hindustan Aeronautics Limited (HAL) production units could be relocated to Andhra Pradesh, after Chief Minister N. Chandrababu Naidu pitched to the Centre, for expanding HAL operations into his state.

 

According to reports, Naidu has urged the Union government to consider setting up a new greenfield HAL facility in Andhra Pradesh, proposing that the unit accommodate future production capacity for the indigenous Light Combat Aircraft (LCA) Tejas and other upcoming aerospace platforms.

 

The Andhra Pradesh Chief Minister’s Office has clarified that the proposal does not involve shifting any existing HAL unit. Naidu, during his meeting with Defence Minister Rajnath Singh, is reported to have offered 10,000 acres of land at Lepakshi, located 70 km from the Andhra-Karnataka border, as a potential site for expansion.

 

“Defence units like these need setbacks as well, which is possible here in Andhra Pradesh and may be tough in Karnataka,” a senior official present at the meeting.

 

HAL, the country’s premier aerospace and defence manufacturer, currently operates large-scale production units in Bengaluru and Tumakuru, both in Karnataka. These units are vital to the ongoing production of fighter jets, helicopters and trainer aircraft, including the Tejas and the planned Advanced Medium Combat Aircraft (AMCA).

 

Naidu’s expansion pitch, however, has stirred a strong response from Karnataka’s leadership, which asserts that HAL’s infrastructure and legacy are deeply entwined with the state’s aerospace ecosystem.

 

“No Chief Minister has the authority to relocate HAL's existing facilities. Operations in Bengaluru will continue. What may have been suggested is the establishment of a new unit, which is a separate matter,” Karnataka Minister for Large and Medium Industries, M.B. Patil, said on Tuesday.

 

 

Also read: DK Shivakumar rejects CM Naidu’s bid to relocate HAL units

 

Chief Minister Siddaramaiah echoed the sentiment. “I do not know, as far as my knowledge goes, it cannot be. It will not be shifted,” he said.

 

Deputy Chief Minister D.K. Shivakumar assured that the Congress-led administration would protect HAL’s infrastructure at all costs. “HAL was not given by any BJP government. It was set up in Bengaluru by Nehru due to the availability of technical manpower. I am not going to interfere in Chandrababu Naidu's political request to the Centre. We have also given sufficient land to HAL and provided land to set up a helicopter unit in Tumakuru. They are free to set up anything new in Andhra Pradesh; we are not going to object to it. But our government will do whatever it takes to protect our state's assets,” he said.

 

He further criticised the silence of Karnataka’s elected MPs on the matter. “What are our elected representatives in Delhi doing? Union Ministers from Karnataka have not spoken a word about this issue. I expect them to stand up for the state.”

 

On the same day as these comments, Defence Minister Rajnath Singh approved the execution model for the AMCA project, currently based in Bengaluru and managed by the Aeronautical Development Agency (ADA) in collaboration with HAL.

 

Karnataka’s Minister for Medical Education and Skill Development, Sharan Prakash Patil, also weighed in. “HAL is the pride of our state. We will not allow its relocation to Andhra Pradesh. This institution was not founded by the BJP. The Congress government brought it here. If there is any attempt to move it, BJP MPs from Karnataka must act. Otherwise, they are betraying the state,” he said.

 

HAL is presently ramping up production of the LCA Tejas to meet Indian Air Force demands, including a ₹6,500 crore order for 83 LCA Mk1A aircraft. Future contracts, such as the Tejas Mk2 and AMCA, will necessitate additional infrastructure and skilled workforce, prompting the search for expansion opportunities.

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