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Andhra Pradesh Offers Land, Karnataka Defends HAL Legacy

Written by: Team Angel OneUpdated on: May 28, 2025, 5:54 PM IST
Karnataka and Andhra Pradesh face off over HAL expansion as both states push to host future AMCA production units.
Andhra Pradesh Offers Land, Karnataka Defends HAL Legacy
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A political tussle has emerged between Karnataka and Andhra Pradesh over the proposed expansion of Hindustan Aeronautics Limited (HAL). Reports suggest that Andhra Pradesh Chief Minister Chandrababu Naidu has offered 10,000 acres at the Lepakshi-Madakasira industrial hub, just 100 km from Bengaluru, for HAL’s Advanced Medium Combat Aircraft (AMCA) production facility.

Naidu presented this proposal during a recent meeting with Defence Minister Rajnath Singh in Delhi. The goal is to relocate or host future AMCA and Light Combat Aircraft (LCA) manufacturing units in Andhra Pradesh.

Karnataka Pushes Back Against Relocation

In response, Karnataka Deputy Chief Minister DK Shivakumar made it clear that the state will not allow HAL operations to be moved from Bengaluru.

“We will not allow anything to be shifted. We will give land if they want to expand. HAL is our pride,” Shivakumar said, referencing the company’s historic ties to Karnataka since its founding under Prime Minister Nehru.

Minister for Large and Medium Industries MB Patil also dismissed the idea of relocation, stating, “No CM can request HAL to be shifted. Existing operations in Bengaluru will continue.” He added that Naidu may have referred only to future expansions, not a transfer of current units.

Andhra Clarifies No Relocation Request Made

Meanwhile, reports say that the Andhra Pradesh Chief Minister’s Office has clarified they have not requested the relocation of any existing HAL facility. Instead, the offer may have been for hosting future projects or new facilities.

Karnataka Chief Minister Siddaramaiah echoed this sentiment, saying, “It will not be shifted. As far as my knowledge goes, that cannot be.”

HAL’s Strategic Importance

HAL remains central to India’s defence manufacturing landscape, with major operations based in Bengaluru. The company is actively involved in the AMCA project, which is overseen by the Aeronautical Development Agency (ADA) in collaboration with HAL.

On Tuesday, Defence Minister Rajnath Singh approved the AMCA Programme Execution Model, allowing public and private sector companies to participate independently, as joint ventures, or in consortia. The move could influence where future production units are set up, but there is no confirmation of relocation from Bengaluru.

Conclusion

While Andhra Pradesh’s offer highlights its ambitions to become a defence manufacturing hub, Karnataka’s leadership has strongly opposed any shift of HAL’s existing operations. Both states may end up playing roles in future expansions, but for now, HAL’s base in Bengaluru remains secure.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: May 28, 2025, 5:54 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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