certainty to India’s defence manufacturing ecosystem by committing to a
five-year restoration and modernisation order pipeline worth over ₹75,000
crore, Business Line reported.
This marks a significant departure from short-term contracting practices and
directly addresses the long-standing demand of defence industry stakeholders,
including public sector undertakings and MSMEs, who have consistently argued
that sustained order visibility is essential for investment in capacity,
technology, and supply chains.
Industry executives have emphasised that companies cannot realistically build
manufacturing capabilities or expand supplier networks on the basis of
short-term contracts, particularly when their primary customer is the armed
forces.
The five-year commitment is expected to provide the assurance required for
vendors to invest in production lines, skilled manpower, and indigenisation,
while simultaneously reducing dependence on imports.
The orders cover life-cycle enhancement of the Army’s T-72 ‘Ajeya’ and T-90
‘Bhishma’ tanks, infantry combat vehicles (BMPs), and Armoured Recovery
Vehicles (ARVs). The restoration programme is designed to bring these
platforms to a “near-zero-hour and zero km state of operational readiness” by
replacing worn-out mechanical, electronic, and engineering systems, thereby
significantly extending their operational life.
Army sources have confirmed that the upgraded platforms will retain only their
basic structures while being fitted with new-generation equipment. For the
first time, tanks will also be equipped with drones for intelligence,
surveillance, reconnaissance, and combat roles, reflecting lessons drawn from
the Russia-Ukraine conflict.
The overhaul will involve replacement of components, sub-assemblies, and
assemblies wherever required, and is expected to reduce import dependence for
maintenance and spares.
Under the program, 790 T-72 tanks will be restored over five years at a cost
exceeding ₹13,000 crore. Defence PSU Armoured Vehicles Nigam Ltd (AVNL),
through its Vehicle Factory Jabalpur, will execute the programme with support
from an ecosystem of around 1,200 MSMEs and start-ups.
AVNL has already
completed restoration of two T-72 tanks as a pilot project earlier this year,
demonstrating proof of concept.
Another 200 T-90 tanks will undergo phased restoration over the next five
years at an estimated cost of ₹56,000 crore. The Army has also cleared the
modernisation of 500 BMP infantry combat vehicles at a cost of under ₹5,000
crore. This work will be undertaken by AVNL’s Ordnance Factory Medak, which
has achieved over 90% indigenisation, underscoring India’s growing
self-reliance in defence production.
In addition, the Army has approved the restoration of 230 Armoured Recovery
Vehicles over five years at a cost of ₹1,400 crore. Built by Bharat Earth
Movers Ltd (BEML), these vehicles are critical for recovering and repairing
tanks on the battlefield, ensuring sustained operational capability during
combat operations.
| Platform | Qty | Program/Action | Timeline | Estimated Cost (₹ Crores) | Primary Executing Agency/Manufacturer | Notes |
|---|---|---|---|---|---|---|
| T-72 tank | 790 | Restoration | 5 years | >13,000 | Armoured Vehicles Nigam Ltd (AVNL)/Vehicle Factory Jabalpur | AVNL completed 2 as pilot; ecosystem support from ~1,200 MSMEs & start-ups |
| T-90 tank | 200 | Phased Restoration | Next 5 years | ~56,000 | Not specified (Army program) | Higher restoration cost per unit than T-72s |
| BMP infantry combat vehicle | 500 | Modernisation | Not specified | Under 5,000 | AVNL/Ordnance Factory Medak | Ordnance Factory Medak claims >90% indigenisation |
| Armoured Recovery Vehicle | 230 | Restoration | 5 years | 1,400 | Bharat Earth Movers Ltd (BEML) | Critical for battlefield recovery and repair of tanks |
This comprehensive program represents a strategic push towards modernisation
and industrial empowerment. By equipping ageing platforms with new-generation
systems and integrating advanced technologies such as drones, the Army is
enhancing battlefield survivability and operational readiness.
At the same time, the initiative strengthens the domestic defence
manufacturing ecosystem, ensuring that critical capabilities are developed and
sustained within the country.
The dual benefit of operational preparedness and industrial growth reflects
the broader vision of Aatmanirbhar Bharat, where national security and
economic resilience are pursued in tandem.
Agencies
