June 12, 2012 : Hindustan Aeronautics Limited (HAL) has announced plans to plough Rs. 600 crore into a facility that will engage in the manufacture new fighter aircraft and produce new engines at Chellaghatta, adjacent to the HAL Airport in Bangalore. The expansion is to be supported by the Karnataka Government. A memorandum of understanding was signed between HAL and the Government of Karnataka last week at the Global Investors' Meet. It is expected that the license-built MMRCA aircraft will be produced at this facility, followed later in the decade by the fifth generation fighter aircraft (FGFA), a twin-seat version of which HAL is developing in cooperation with Russia's Sukhoi Design Bureau. “The new unit requires access to runway. It is a time bound programme to establish the infrastructure, production facilities and supply of aircraft,” says HAL Chairman R.K. Tyagi.

The company plans to raise the facility over 40 acres of land at Chellaghatta. A new division for aircraft assembly and testing and another for engine assembly and testing are proposed for the new fighter aircraft programme. According to a statement, the proposed facility facility could create direct employment for 1,200 personnel. An additional 3,600 jobs could be created as a result of the large demand for logistics, services and outsourcing activity.