Pitch for big defence industrial corridor: Chandrababu Naidu wants HAL to make combat aircraft in Andhra Pradesh

TOI Business Desk / TIMESOFINDIA.COM / May 24, 2025, 21:19 IST

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Andhra Pradesh Chief Minister N Chandrababu Naidu has proposed relocating HAL's AMCA and LCA production to his state, offering 10,000 acres. This is part of a larger plan to establish a defence industrial corridor across Andhra Pradesh, aiming to boost domestic production and reduce import dependency.

Pitch for big defence industrial corridor: Chandrababu Naidu wants HAL to make combat aircraft in Andhra Pradesh

HAL, anticipating orders worth Rs 2.5 trillion by 2026-27, is increasing production of LCA and Light Combat Helicopters. (File photo of Tejas)

HAL defence aircraft to be made in Andhra Pradesh? N Chandrababu Naidu, the Chief Minister of Andhra Pradesh and a significant NDA ally, has proposed relocating the production facilities of Hindustan Aeronautics Limited's (HAL) Advanced Medium Combat Aircraft (AMCA) and Light Combat Aircraft (LCA) from Karnataka to Andhra Pradesh.He has offered 10,000 acres at the Lepakshi-Madakasira hub, situated an hour's distance from Bengaluru airport, for establishing HAL's AMCA production facility.HAL, in partnership with various private organisations, is developing and manufacturing AMCA, India's fifth-generation stealth fighter aircraft. According to an ET report, the offer for setting up the facility forms part of Naidu's comprehensive proposal for establishing a defence industrial corridor, India's third following Uttar Pradesh and Tamil Nadu.Also Read | Target where it hurts: India wants Pakistan back on FATF ‘grey list’; to oppose World Bank loansThe proposed corridor spans 23,000 acres across Andhra Pradesh from north to south, incorporating five strategic hubs. The Chief Minister presented these plans during his meeting with Defence Minister Rajnath Singh on Friday.Andhra Pradesh Defence CorridorThe defence industrial corridors leverage existing manufacturing infrastructure whilst encouraging private sector investments. These corridors aim to boost domestic production of defence and aerospace equipment, thereby reducing import dependency and fostering international exports.

The proposal includes relocating AMCA manufacturing to the Lepakshi-Madakasira hub, envisioned as the defence industrial corridor's primary centre.
Sources indicate that Naidu emphasised HAL's constraints within Bengaluru's infrastructure, suggesting Andhra Pradesh could offer expanded land resources and enhanced policy incentives.
The Visakhapatnam-Anakapalli hub, spanning 3,000 acres, is presented as a potential site for Naval Equipment and Weapons Testing. The proposal includes designating the seafront area as a marine and underwater SEZ, supporting both Eastern Naval Command and National Advanced Offshore Base.
For the Jaggiahpet-Donakonda hub, there's a proposal to establish an IAF Station at Donakonda, with 6,000 acres already identified. The comprehensive plan encompasses an operational air base, logistics facilities, training centre and an R&D complex for the Indian Air Force.
Additionally, Naidu highlighted that HAL, anticipating orders worth Rs 2.5 trillion by 2026-27, is increasing production of LCA and Light Combat Helicopters, with Andhra Pradesh ready to support this expansion with necessary infrastructure.
The fourth industrial centre, spanning 4,000 acres at Kurnool-Orvakal, has been designated for the production of military drones, robotics and sophisticated defence components.
The fifth centre is slated for defence innovation research and development activities in Tirupati.

During his two-day visit to the capital, Naidu held meetings with several cabinet ministers including Amit Shah (Home), Nirmala Sitharaman (Finance), Prahlad Joshi (New and Renewable Energy), CR Patil (Jal Shakti), Dr Jitendra Singh (Science and Technology) and Ashwini Vaishnaw (IT).Also Read | Forced to destroy! US rejects 15 mango shipments from India, exporters estimate losses of $500,000

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TOI Business Desk

The TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.

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