Andhra Pradesh’s Chief Minister N. Chandrababu Naidu has proposed relocating Hindustan Aeronautics Limited’s Advanced Medium Combat Aircraft and Light Combat Aircraft production facilities from Karnataka to Andhra Pradesh. He has offered 10,000 acres at the Lepakshi-Madakasira hub, approximately an hour from Bengaluru airport, to establish a new greenfield facility. This move aims to bolster Andhra Pradesh’s role in national defence manufacturing and industrial development.
In response, Karnataka’s Industries and Infrastructure Minister M.B. Patil expressed concern over the potential shift. He announced plans to meet with Defence Minister Rajnath Singh to ensure that HAL’s proposed investments remain in Karnataka. Patil emphasized the need to protect Karnataka’s stake in these strategic defence-related investments, highlighting the state’s existing aerospace ecosystem and skilled workforce.
The competition between the two states underscores the broader trend of regional governments vying for defence manufacturing projects to boost economic growth and employment. Karnataka’s established aerospace infrastructure has been a significant factor in attracting such investments. For instance, Tata Advanced Systems Limited and Airbus are collaborating to set up India’s first privately led helicopter final assembly line for the Airbus H125 in Kolar, Karnataka. This facility is expected to begin operations in 2026, producing ten H125 helicopters annually, with potential for scaling up based on demand.
Andhra Pradesh’s proposal to host HAL’s AMCA and LCA production facilities is part of a broader strategy to develop a large defence industrial corridor in the state. The Lepakshi-Madakasira hub’s proximity to Bengaluru and availability of land are key factors in this pitch. Naidu’s government has been actively pursuing investments in various sectors, including renewable energy and infrastructure, to position Andhra Pradesh as a significant industrial hub.
The central government’s decision on HAL’s facility location will have significant implications for both states. While Karnataka seeks to retain its status as a leading aerospace and defence manufacturing centre, Andhra Pradesh aims to attract new investments to stimulate economic development. The outcome will depend on various factors, including infrastructure readiness, workforce availability, and strategic considerations.
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