Karnataka vs Andhra Pradesh over HAL's manufacturing unit: What we know so far

Reports suggest Chandrababu Naidu had proposed relocating the HAL manufacturing unit from Bengaluru to Lepakshi in Andhra Pradesh.

As the Centre approved the "execution model" for implementing a major indigenous project to develop India's fifth-generation, deep-penetration advanced medium combat aircraft (AMCA) for the Indian Air Force, Karnataka and Andhra Pradesh are reportedly engaged in a dispute over relocation of Hindustan Aeronautics Limited (HAL) production units.

Reports suggest that Chandrababu Naidu had proposed relocating the HAL manufacturing unit from Bengaluru to Lepakshi in Andhra Pradesh. However, according to a report by NDTV, Naidu had raised the proposal for establishing a new greenfield HAL facility in Andhra Pradesh during his recent engagements with the Union government, including meetings with Defence Minister Rajnath Singh. The proposal reportedly seeks to house future manufacturing capacity for the Light Combat Aircraft (LCA) Tejas and other upcoming indigenous platforms.

The pushback from Karnataka

Meanwhile, the Karnataka state government stated that HAL is Karnataka’s pride and will seek a defense corridor for the state. The pushback, reportedly comes after reports that the Andhra Pradesh has offered 10,000 acres of land in Andhra Pradesh’s Lepakshi-Madakasira region in Anantapur district — roughly an hour from Bengaluru’s airport — as a possible site for HAL’s AMCA and LCA manufacturing units. The Andhra CM is said to have urged the Centre to consider moving the projects to AP, highlighting proximity to Bengaluru and availability of land.

Why Karnataka considers HAL as its pride

Emphasising the state's historical and strategic role in India's defence ecosystem, Karnataka deputy chief minister DK Shivakumar on Monday cited the company’s roots in Bengaluru dating back to 1940. “As our Nehruji gave us, it is a base. “We will not allow what has been functioning here to be shifted,” Shivakumar said, reaffirming Karnataka’s commitment to HAL’s presence. “HAL is our pride. We have provided land for expansion in Tumkur and Bengaluru. If they want to expand, we are ready to support that here," remarked the Congress leader. Bidar has a base, Bengaluru has a base. We have two HAL airports in Bengaluru itself — one in Yelahanka and one in HAL.”

Andhra Pradesh denies any expansion plans

According  to NDTV, the Andhra Pradesh chief minister's office has clarified that they have not pitched for shifting any existing facility. In his meeting with Defence Minister Rajnath Singh, the Andhra Pradesh chief minister offered 10,000 acres of land just 70 km from the Andhra-Karnataka border at Lepakshi, for any expansion plans of HAL.

HAL, India's flagship aerospace and defence manufacturing company, currently operates major production facilities in Bengaluru and Tumakuru in Karnataka. These units are central to the production of fighter jets, helicopters, and trainer aircraft, including the LCA Tejas and the planned Advanced Medium Combat Aircraft (AMCA).