Defence Minister Rajnath Singh has inaugurated a ₹472-crore project in Jabalpur to overhaul T-72 and T-90 tanks. This move aims to bridge the capacity gap in the Army's armoured fleet maintenance and bolster local MSMEs.

  • A new ₹472-crore facility will be established in Jabalpur for T-72 and T-90 tank overhauling.
  • The facility will add an annual capacity of 80 tanks to the existing military infrastructure.
  • The project is expected to significantly boost the local MSME ecosystem in the defence sector.

Union Defence Minister Rajnath Singh on Thursday laid the foundation stone for a massive ₹472-crore project at the Vehicle Factory Jabalpur in Madhya Pradesh. The facility is specifically designed to overhaul T-72 and T-90 tanks, ensuring the Indian Army's armoured fleet remains mission-ready and technologically advanced.

The ceremony, held at the Armoured Vehicles Nigam Limited (AVNL) unit, was attended by Madhya Pradesh Chief Minister Mohan Yadav. This strategic investment aims to address the critical capacity gap in tank maintenance. Currently, the Army requires approximately 230 tank overhauls annually, but the existing Heavy Vehicles Factory in Avadi can only handle 150. The new Jabalpur facility will provide an additional 80-tank capacity per year.

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Why This Matters

BozokMedia analysis shows that this project is a cornerstone in India's transition from a major importer to a self-reliant defence manufacturer. By localizing the maintenance and upgrading of high-value assets like T-90 tanks, India is reducing its vulnerability to global supply chain disruptions.

During the event, Mr. Singh highlighted that while the nature of warfare is shifting towards drones, AI, and cyber capabilities, the core relevance of tanks remains intact. However, he emphasized that modern tanks must now be integrated with precision-guided weapons, surveillance, and electronic warfare systems to survive on the contemporary battlefield.

Modern warfare demands combined capabilities rather than dependence on a single platform, integrating tanks with drones and AI.

Beyond military readiness, the project serves as a massive economic catalyst. It is expected to create a robust defence-industrial ecosystem by providing opportunities for MSMEs to supply critical mechanical, electrical, and hydraulic components.

Historical Background

India's defence manufacturing landscape has undergone a paradigm shift. Defence production has surged from ₹46,000 crore in 2014-15 to approximately ₹1.80 lakh crore in 2025-26. Furthermore, defence exports have seen a meteoric rise from less than ₹1,000 crore to nearly ₹39,000 crore, signaling India's emergence as a global defence exporter.

Did You Know?: India's defence exports have increased nearly 39-fold over the last decade!

Frequently Asked Questions

1. Which tank models will be serviced at the Jabalpur facility?
The facility will focus on overhauling the T-72 and T-90 tank variants.

2. How will this project impact the local economy?
It will create a wider local defence-industrial ecosystem by involving MSMEs in the supply of specialized components.