Karnataka Opposes Shifting AMCA Production Unit To Andhra Pradesh

The ongoing dispute between Karnataka and Andhra Pradesh over the location of HAL Advanced Medium Combat Aircraft (AMCA) and LCA production units has intensified following a proposal by Andhra Pradesh CM Naidu.

Karnataka Opposes Shifting AMCA Production Unit To Andhra Pradesh

The ongoing dispute between Karnataka and Andhra Pradesh over the location of HAL Advanced Medium Combat Aircraft (AMCA) and LCA production units has intensified following a proposal by Andhra Pradesh CM Naidu. Naidu has offered 10,000 acres of land in the Lepakshi- Madakasira region,, 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. The final decision will likely hinge on central government policy, balancing regional aspirations with national strategic priorities.

Raksha Mantri Approves AMCA

In a significant push towards enhancing India’s indigenous defence capabilities and fostering a robust domestic aerospace industrial ecosystem, Raksha Mantri Shri Rajnath Singh has approved the Advanced Medium Combat Aircraft (AMCA) Programme Execution Model. The Aeronautical Development Agency (ADA) is set to execute the programme through Industry partnership.

The Execution Model approach provides equal opportunities to both private and public sectors on competitive basis. They can bid either independently or as joint venture or as consortia. The entity/bidder should be an Indian company compliant with the laws and regulations of the country. This is an important step towards harnessing the indigenous expertise, capability and capacity to develop the AMCA prototype, which will be a major milestone towards Aatmanirbharta in the aerospace sector. ADA will shortly issue an Expression of Interest (EoI) for the AMCA Development Phase.