Karnataka, Andhra Pradesh Lock Horns Amid HAL Relocation Row

The Karnataka government has rejected speculation surrounding any potential relocation of Hindustan Aeronautics Limited (HAL) production units to Andhra Pradesh.

This follows Andhra Pradesh Chief Minister N Chandrababu Naidu's suggestion to expand HAL operations into his state, reported NDTV.

Photo Credit: PTI

Naidu recently put forward a proposal to the Union government to establish a new greenfield HAL facility in Andhra Pradesh, including discussions with Defence Minister Rajnath Singh.

The proposal is aimed at hosting future production capacities for platforms like the Light Combat Aircraft (LCA) Tejas and other indigenous defence programmes.

Clarifying its position, the Andhra Pradesh Chief Minister's Office stated that there had been no proposal to shift existing HAL units.

During his meeting with Rajnath Singh, Naidu reportedly offered 10,000 acres of land near Lepakshi-around 70 km from the Andhra-Karnataka border-for HAL's possible expansion.

HAL, India's premier aerospace and defence manufacturer, currently operates key production sites in Bengaluru and Tumakuru, Karnataka. These units are pivotal to the assembly of fighter jets, helicopters, and trainer aircraft, such as the LCA Tejas and the upcoming Advanced Medium Combat Aircraft (AMCA).

Naidu's suggestion has drawn sharp responses from Karnataka's leadership, which maintains that HAL's manufacturing base is deeply integrated into the state's aerospace ecosystem and cannot be relocated or replicated easily.

Karnataka Minister for Large and Medium Industries, MB Patil, firmly dismissed any suggestion of relocation. "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," Patil said on Tuesday.

Chief Minister Siddaramaiah echoed this view, stating: "I do not know, as far as my knowledge goes, it cannot be. It will not be shifted."

Deputy Chief Minister DK Shivakumar reiterated the Congress government's commitment to safeguarding HAL's presence in Karnataka. "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 also criticised the silence of Karnataka's Members of Parliament 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 Karnataka ministers issued their remarks, Defence Minister Rajnath Singh approved the execution model for the AMCA project, which remains headquartered in Bengaluru and is being implemented by the Aeronautical Development Agency (ADA) in collaboration with HAL.

Karnataka's Minister for Medical Education and Skill Development, Sharan Prakash Patil, also voiced his concerns. "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 already expanding LCA Tejas production to meet Indian Air Force demands, including a recent ₹6,500 crore order for 83 LCA Mk1A units. Further orders for the Tejas Mk2 and AMCA will require enhanced infrastructure and skilled personnel.

As of now, the Ministry of Defence has not issued an official statement regarding the Andhra Pradesh proposal.