Karnataka, Andhra Tug-Of-War Over State-Owned Defence Manufacturer HAL

The Karnataka government has dismissed reports of any potential relocation of Hindustan Aeronautics Limited (HAL) production units to Andhra Pradesh, following Andhra Chief Minister N Chandrababu Naidu's pitch for expanding HAL operations into his state.

Mr Naidu has raised the proposal for establishing a new greenfield HAL facility in Andhra Pradesh during his recent engagements with the Union government, including meetings with Defence Minister Rajnath Singh. The proposal reportedly seeks to house future manufacturing capacity for the Light Combat Aircraft (LCA) Tejas and other upcoming indigenous platforms.

The Andhra Pradesh chief minister's office has clarified that they have not pitched for shifting any existing facility. In his meeting with Defence Minister Rajnath Singh, the Andhra Pradesh chief minister offered 10,000 acres of land just 70 km from the Andhra-Karnataka border at Lepakshi, for any expansion plans of HAL. 

"Defence units like these need setbacks as well, which is possible here in Andhra Pradesh and may be tough in Karnataka," a top source who was at the meeting with the Defence Minister told NDTV.

HAL, India's flagship aerospace and defence manufacturing company, currently operates major production facilities in Bengaluru and Tumakuru in Karnataka. These units are central to the production of fighter jets, helicopters, and trainer aircraft, including the LCA Tejas and the planned Advanced Medium Combat Aircraft (AMCA).

The suggestion from Mr Naidu has sparked a sharp response from Karnataka's leadership, which insists that HAL's manufacturing base is integrally linked to the state's aerospace sector and cannot be shifted or duplicated easily.

Speaking on Tuesday, Karnataka Minister for Large and Medium Industries MB Patil dismissed speculation about any move to shift HAL operations. "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," Mr Patil said.

Karnataka Chief Minister Siddaramaiah echoed this stance. "I do not know, as far as my knowledge goes, it cannot be. It will not be shifted," he said. 

Deputy Chief Minister DK Shivakumar said that the Congress-led government would protect HAL and its associated infrastructure in the state at all costs. 

"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 questioned the silence of Karnataka's MPs on the issue. "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 when Karnataka ministers issued their statements, Defence Minister Rajnath Singh approved the execution model for the AMCA project. The project is currently based in Bengaluru and managed by the Aeronautical Development Agency (ADA) in collaboration with HAL.

Karnataka Minister for Medical Education and Skill Development, Sharan Prakash Patil, also spoke out. "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 on track to scale up Tejas production to meet Indian Air Force requirements, including a recently approved Rs 6,500 crore order for 83 LCA Mk1A variants. Future orders, potentially including the Tejas Mk2 and AMCA, will require expanded infrastructure and trained personnel.

The Ministry of Defence has yet to comment officially on whether any such expansion proposal is under formal consideration.