The ongoing dispute between Karnataka and Andhra Pradesh over the location of Hindustan Aeronautics Limited’s (HAL) Advanced Medium Combat Aircraft (AMCA) and Light Combat Aircraft (LCA) production units has intensified following a proposal by Andhra Pradesh Chief Minister N Chandrababu Naidu.

Naidu has offered 10,000 acres of land in the Lepakshi-Madakasira region, near Bangalore airport, to establish HAL’s AMCA and LCA manufacturing facilities as part of a larger plan to create a major defence industrial corridor in Andhra Pradesh. This corridor, spanning 23,000 acres across five hubs, aims to position Andhra Pradesh as a new centre for aerospace and defence manufacturing, complementing existing corridors in Uttar Pradesh and Tamil Nadu.

Reacting strongly, Karnataka Deputy Chief Minister DK Shivakumar and Industries Minister MB Patil have categorically opposed any move to shift existing HAL production units out of Karnataka. Shivakumar emphasised that HAL is a legacy institution for Karnataka, with Bengaluru serving as its base and home to its airports and critical infrastructure.

He asserted that while Karnataka is open to supporting HAL’s expansion with land and other resources—such as recent allotments in Tumkur and for the helicopter division—relocating any existing units is non-negotiable and will not be permitted under any circumstances.

Minister MB Patil echoed this stance, terming Andhra Pradesh’s proposal to shift HAL’s established operations as “inappropriate and worrying.” He clarified that while setting up new facilities in Andhra Pradesh as part of HAL’s expansion could be considered, the transfer of existing Bangalore operations is unjustifiable and detrimental to Karnataka’s long-standing leadership in aerospace and defence manufacturing.

Patil also highlighted Karnataka’s significant contribution to the sector, accounting for 65% of India’s aerospace and defence output, and renewed the state’s demand for a dedicated defence industrial corridor.

Naidu’s pitch to the Union government, presented to Defence Minister Rajnath Singh, is driven by the argument that Bangalore’s infrastructure is saturated and that Andhra Pradesh can offer better land availability, policy incentives, and logistical support. He envisions the Lepakshi-Madakasira hub as a comprehensive aerospace ecosystem, leveraging proximity to Bangalore’s talent and supply chains while providing ample space for future growth.

The Karnataka government, however, views the proposal as an attempt to erode its strategic and economic advantage. State leaders have vowed to mobilise parliamentary and ministerial support to ensure HAL’s core operations remain in Karnataka, framing the issue as both a matter of state pride and national interest.

The dispute underscores a broader competition among states to attract high-value defence manufacturing projects. While Andhra Pradesh seeks to leverage central government alliances and land availability to secure new investments, Karnataka is determined to protect its historic association with HAL and retain its status as India’s premier aerospace hub.

The final decision will likely hinge on central government policy, balancing regional aspirations with national strategic priorities.

Based On UNI Report