This seems like a good idea and beneficial to all. If a private company wants the deal and start production then they have to make expensive land acquisition costs, setting up production lines, buying the correct machinery, setup facilities etc which costs a lot before they even make the first jet.
If the private company only has to build new production lines, facilities, modify any buildings then they don't have to make any expensive land purchases as they can use and setup whatever they need to do on HALs existing land along with their existing buildings or facilities. After that then the private company can focus on manufacturing and producing the jets rather than having HAL involved in the process at all except with providing the engines which they can manufacture.
If the private company only has to build new production lines, facilities, modify any buildings then they don't have to make any expensive land purchases as they can use and setup whatever they need to do on HALs existing land along with their existing buildings or facilities. After that then the private company can focus on manufacturing and producing the jets rather than having HAL involved in the process at all except with providing the engines which they can manufacture.