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  1. Defence ministry inks $248 million deal with Russia to upgrade T-72 tanks with 1000 HP engines

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Defence ministry inks $248 million deal with Russia to upgrade T-72 tanks with 1000 HP engines

Upstox

2 min read | Updated on March 07, 2025, 18:28 IST

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SUMMARY

The deal includes a transfer of technology (ToT) to Armoured Vehicles Nigam Limited (AVNL) – Heavy Vehicle Factory (HVF), Avadi, for local integration and production under the ‘Make in India’ initiative.

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The Ministry of Defence signed a contract with Rosoboronexport (RoE), Russian Federation worth $ 248 million for procurement of 1000 HP Engines for T-72 Tanks

The Ministry of Defence on Friday signed a contract worth $248 million with Russia’s Rosoboronexport (RoE) for the procurement of 1000 HP engines for T-72 tanks in fully formed, completely knocked down, and semi-knocked down conditions.

The agreement also includes the transfer of technology (ToT) from RoE to Armoured Vehicles Nigam Limited (AVNL) – Heavy Vehicle Factory (HVF), Avadi, Chennai, for integration and subsequent licensed production of the engines as part of the ‘Make in India’ programme.

T-72 tanks, the mainstay of the Indian Army’s armoured fleet, are currently fitted with 780 HP engines. Equipping the existing fleet of T-72 Tanks with 1000 HP Engine will enhance the battlefield mobility and offensive capability of the Indian Army, the defence ministry said in a statement.

In January, the defence ministry signed a ₹1,561 crore contract with HVF for supplying 47 T-72-based bridge laying tanks (BLTs) to the Army. The BLTs will facilitate the swift movement of mechanised forces in combat zones.

“The BLT provides integral bridging capability to tanks, enhancing battlefield mobility and offensive capability. The procurement falls under the ‘Buy Indian-Indigenously Designed Developed and Manufactured (IDDM)’ category, giving impetus to the Make-in-India initiative in defence,” the ministry said in a statement.

The Indian-IDDM category is a key component of the defence procurement policy aimed at promoting indigenisation.

The project is expected to contribute to the economy and generate employment opportunities, the ministry added.

HVF, a unit of AVNL, is one of the seven defence entities formed following the corporatisation of the erstwhile Ordnance Factory Board in 2021.

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Upstox
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