The Congress-ruled Karnataka and TDP-BJP alliance-ruled Andhra Pradesh have come at loggerheads over the possible relocation of major defence manufacturing units of Hindustan Aeronautics Limited (HAL) from Bengaluru to Andhra Pradesh.
The row erupted after several media reports claimed that the Andhra Pradesh Chief Minister Chandrababu Naidu urged Prime Minister Narendra Modi to relocate HAL from Karnataka’s Bengaluru to Andhra Pradesh, during a recent NITI Aayog meeting.
Reports suggest that the two crucial projects—the Light Combat Aircraft (LCA) Tejas and the Advanced Medium Combat Aircraft (AMCA)–are at the heart of the controversy.
The Andhra Pradesh CM reportedly offered 10,000 acres of land in the Lepakshi-Madakasira region of Anantapur district for setting up the new manufacturing facilities for the LCA and AMCA projects.
CM Naidu reportedly highlighted that Bengaluru faces space constraints. He added that the said the proposed site in Andhra is well-suited for setting up new manufacturing facilities due to its proximity to HAL’s existing infrastructure.
Besides, the Andhra Pradesh government has also proposed to develop manufacturing units in 4,000 acres of land at Orvakal in Kurnool district. These units would focus on military drones, robotics and advanced defence components.
HAL in Bengaluru and the significance of the LCA and AMCA projects
Based in Bengaluru, HAL is essential to India’s defence manufacturing. It is the primary production partner for the future AMCA as well as the LCA Tejas.
The locally designed Tejas aircraft is produced by the LCA Tejas Division in Bengaluru. Established in 2002, this division had an upgrade in 2014. Currently, 123 aircraft are on order, including 83 Mk1A aircraft that were ordered in 2021. Export orders are also being worked on.
HAL is increasing manufacturing from 10 to 16 aircraft annually in order to satisfy the increasing demand. In 2021, a new Plant II was developed to facilitate this growth.
Founded in 1940, the Bengaluru-based Aircraft Division manufactures both licensed and domestic aircraft and manages modifications for platforms such as Jaguar and Hawk planes. This state-of-the-art facility has its own airstrip as well as advanced infrastructure for assembly, testing, and production.
With an emphasis on deep penetration strike capabilities, India launched its ambitious fifth-generation stealth fighter jet project —AMCA. The execution plan for its development, which would be headed by the Aeronautical Development Agency (ADA) in collaboration with HAL and industry participants, was recently approved by Defence Minister Rajnath Singh.
The project is crucial for boosting India’s air strength and has been approved in principle by the Cabinet Committee on Security. It is expected to cost about Rs 15,000 crore. Meanwhile, LCA Tejas is the light multirole fighter aircraft, and is already in production.
So far, Karnataka has been the India’s aerospace and defence hub, however, any prospect of HAL moving out of Karnataka is opposed by the Karnataka government. The Congress government in the state has raised strong objections over the alleged proposal by the Andhra Pradesh CM regarding setting new HAL facilities in the state.
Karnataka Deputy Chief Minister DK Shivakumar on Tuesday (27th May), said that the state government would not allow the shifting of Hindustan Aeronautics Limited (HAL) production units out of Bengaluru. He was reacting to Andhra Pradesh Chief Minister N. Chandrababu Naidu’s proposal to relocate HAL’s advanced production facilities to his state.
“I don’t want to comment on whatever they demand. I want Parliament members and Central ministers to react to this, but as the government, we will not allow anything to be shifted. We will give land if they want to expand,” Shivakumar told reporters here.
“They can get any new thing if they want, we will not come in their way, but as far as Karnataka is concerned, HAL is our pride, Nehruji gave this to us,” he added.
#WATCH | Bengaluru: Andhra Pradesh CM N Chandrababu Naidu's demand regarding Hindustan Aeronautics Limited (HAL) production unit, Karnataka Deputy CM DK Shivakumar says "I don't want to comment on whatever they demand. I want Parliament members and Central ministers to react to… pic.twitter.com/o2UuYhawEp
— ANI (@ANI) May 27, 2025
Meanwhile, Defence Minister Rajnath Singh on Tuesday approved the Advanced Medium Combat Aircraft (AMCA) Programme Execution Model, a key step to boost India’s indigenous defence capabilities and strengthen the domestic aerospace industry, the Ministry of Defence (MoD) said in an official statement.
On Tuesday, Karnataka minister M.B. Patil dismissed reports suggesting that Bengaluru-headquartered Hindustan Aeronautics Limited (HAL) may relocate its production units for the Light Combat Aircraft (LCA) and Advanced Medium Combat Aircraft to Andhra Pradesh.
Responding to Andhra Pradesh Chief Minister N. Chandrababu Naidu’s reported proposal, Patil clarified that such a move was neither feasible nor within the authority of a Chief Minister.
“As far as I learned, no CM can request HAL to be shifted somewhere. All existing operations in Bengaluru, in Karnataka, will continue,” Patil told reporters. He added, “He may have said that future expansions or one more HAL unit [could] come over there. And if I am right, I don’t think he can say and he would not have said to shift the HAL operations elsewhere.”
#WATCH | Bengaluru, Karnataka | Andhra Pradesh CM N Chandrababu Naidu's demand regarding Hindustan Aeronautics Limited (HAL) production unit, Karnataka Minister MB Patil says, "I don't think it will happen. HAL will go by merit… Which industry wants to go where there's no… pic.twitter.com/9sEGME3Rdy
— ANI (@ANI) May 28, 2025
Meanwhile, Karnataka Chief Minister Siddaramaiah also dismissed the possibility of relocation, stating, “I do not know, as far as my knowledge goes, it cannot be. It will not be shifted.”
Echoing a similar stance, Karnataka Deputy Chief Minister D.K. Shivakumar said the state would protect its assets at all costs. His remarks followed reports that Andhra Pradesh Chief Minister Chandrababu Naidu had proposed relocating HAL’s advanced production facilities responsible for manufacturing the LCA Tejas and developing the AMCA project to Andhra Pradesh.
Speaking to reporters at the KPCC office, Shivakumar said, “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 also questioned the silence of Karnataka MPs on the matter, saying, “What are our MPs representing Karnataka doing? The Union Ministers have not spoken a word about moving HAL to Andhra Pradesh. I would expect them to speak up for the state.”
Did CM Chandrababu Naidu pitch for shifting any existing HAL manufacturing facility to Andhra Pradesh?
While the political war of words is raging on, the Andhra Pradesh Chief Minister has not proposed moving any existing HAL facility to the state. This clarification is important since the Karnataka government’s main concern stems from the possibility of the Andhra government seeking the shifting of an existing HAL facility to the state. It is essential to note that CM Naidu is free to ask for a new HAL unit to be set up in Andhra Pradesh.
Citing a top source, NDTV reported that Defence units for LCAs and AMCAs need setbacks as well, which is possible in Andhra Pradesh and may be tough in Karnataka.
