The pilot Air Commodore (Retd) Roy Asxey (59) and the trainee official Veerendra (25) have been hospitalised, officials in Hindustan Aeronautics Ltd said.
The cause of the mishap, which occurred around nine am, was being ascertained, HAL Chairman Ashok Naik said.
The usual procedure followed by HAL is to go in for a post-impact analysis report following a crash.
The Director General of Civil Aviation (DGCA) has ordered an inquiry into the incident and its report is awaited, Naik added.
HAL Rotary Wing Academy was established in February 2000 for helicopter flying training of abinitio civil pilot trainees. The academy uses Dhruv, Chetak, Schweizer 300C and Scweizer 330 SP for training.
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