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Brinks Report > Blog > Business > Who Gets HAL’s Jet Plant? Karnataka Fights Andhra’s Pitch- What We Know So Far
Business

Who Gets HAL’s Jet Plant? Karnataka Fights Andhra’s Pitch- What We Know So Far

Dolon Mondal
Last updated: May 28, 2025 5:15 pm
Dolon Mondal
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India’s aerospace crown jewel, Hindustan Aeronautics Limited (HAL), is suddenly at the heart of a political tug-of-war. While Karnataka houses HAL’s primary manufacturing units in Bengaluru and Tumakuru, Andhra Pradesh has proposed building a brand-new HAL facility in Lepakshi, Anantapur — just about 70 km from the Karnataka border.

This comes on the heels of the Centre approving an execution model for India’s next big leap in defence: the indigenous fifth-generation Advanced Medium Combat Aircraft (AMCA).

Trulli

With HAL playing a critical role in this project, where the next phase of expansion happens has stirred up a storm.

Wherever the HAL manufacturing unit expands next, it brings with it thousands of skilled jobs and a boost to the local economy.

For Karnataka, which already hosts two HAL airports and major defence infrastructure, this is not just about pride — it’s about continuing its legacy.

For Andhra, this is about tapping into opportunity. By offering 10,000 acres in Lepakshi, Chief Minister Chandrababu Naidu is aiming to bring in high-tech manufacturing, innovation hubs, and central government attention. And let’s face it — Lepakshi being barely an hour away from Bengaluru airport doesn’t make it feel too far from HAL’s roots.

Also Read Big Plans Ahead! Hindustan Zinc to Invest a Whopping $225-250 Million in FY26! What This Means for Their Future Growth

Karnataka stands its ground

Karnataka Deputy CM DK Shivakumar isn’t having any of it. “HAL is our pride,” he said, reminding the country that HAL’s roots go back to 1940 in Bengaluru. He added that the state is ready to provide more land for expansion — in Tumakuru, Bengaluru, or even Bidar.

And in case the Centre missed the message: “We will not allow what has been functioning here to be shifted,” he declared.

Andhra says: We’re not stealing, just offering

To cool the heat, Andhra Pradesh clarified via NDTV that no existing HAL unit is being requested to move. Instead, Naidu’s proposal is for a greenfield facility — an additional unit, not a replacement. The idea: support HAL’s growing role in projects like the LCA Tejas, AMCA, and more.

From a strategic point of view, expanding HAL’s footprint outside Karnataka could decentralize India’s defence ecosystem — a valid argument. But from Karnataka’s view? It’s like someone offering to adopt your grown-up child who just won a national medal. Not happening.

What’s really going on?

This isn’t just about land. It’s about legacy versus opportunity, regional pride versus national strategy. And yes, it’s also about elections and optics. Both states are playing to the gallery — one defending history, the other selling the future.

HAL, meanwhile, is staying quiet. Perhaps because it’s busy — building the very planes that protect the skies above both these states.

Also Read Defence Ministry Readies Rs 3,000 Crore Order for Invar Missiles by Bharat Dynamics

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