A new political tug-of-war has emerged between Karnataka and Andhra Pradesh over the expansion of Hindustan Aeronautics Limited (HAL), India’s leading defence and aerospace manufacturer. The controversy was triggered after Andhra Pradesh Chief Minister N Chandrababu Naidu pitched the idea of setting up a new greenfield HAL facility in Lepakshi, just 70 km from the Karnataka border. This proposal, made during his recent meetings with Union Defence Minister Rajnath Singh, aims to support the manufacturing of indigenous defence platforms such as the Light Combat Aircraft (LCA) Tejas and the upcoming Advanced Medium Combat Aircraft (AMCA).
Naidu’s office has clarified that there was no suggestion to relocate any existing HAL facility from Karnataka. The intent, according to sources familiar with the discussions, is to provide additional space for HAL’s expansion needs. With 10,000 acres of land on offer, the Andhra government argues that logistical advantages and land availability make Lepakshi an ideal choice for future growth.
However, the proposal has stirred strong reactions in Karnataka, which currently houses HAL’s key manufacturing units in Bengaluru and Tumakuru. These sites are critical for the production of fighter jets, helicopters, and trainers, and are central to India’s defence infrastructure.
Karnataka’s Minister for Large and Medium Industries MB Patil was quick to dismiss any relocation talks, stating that no chief minister has the authority to shift HAL’s operations. Chief Minister Siddaramaiah reiterated that such a move was not on the cards. Meanwhile, Deputy Chief Minister DK Shivakumar emphasized that the Congress government in Karnataka would protect HAL’s legacy, infrastructure, and workforce. He also criticized the silence of Karnataka’s BJP MPs on the issue and urged them to defend the state's interests at the central level.
Defence Minister Rajnath Singh, on the same day, approved the execution model for the AMCA project, currently based in Bengaluru under the management of the Aeronautical Development Agency (ADA) in collaboration with HAL. This further reinforces Karnataka’s central role in India’s future aerospace ambitions. Medical Education and Skill Development Minister Sharan Prakash Patil joined the chorus, stating that HAL is a symbol of Karnataka’s pride and should remain in the state. He pointed out that the institution was established in Bengaluru due to the availability of technical manpower, long before the BJP came to power.
Meanwhile, HAL is already scaling up Tejas production under a ₹6,500 crore order for 83 LCA Mk1A aircraft. Future orders for Tejas Mk2 and AMCA will demand more infrastructure, sparking interest from multiple states keen to host new defence industrial hubs. As of now, the Ministry of Defence has not issued an official comment on whether Naidu’s proposal is under formal review. However, the regional tension underscores the increasing importance of defence manufacturing in India’s economic and political landscape, with states competing to host strategic national assets like HAL.
