New Delhi: The Indian Army ₹75,000 crore defence orders programme is set to give India’s defence industry long-term business certainty. Under this five-year plan, the Army will place restoration and modernization orders for tanks and armoured vehicles, helping defence public sector companies, MSMEs, and private firms expand production, invest in technology, and strengthen the country’s self-reliance in defence manufacturing.
Details of Indian Army ₹75000 crore Fleet Modernization Programme
The Indian Army has announced a five-year order pipeline worth more than ₹75,000 crore to restore and modernize its ageing fleet of Soviet-origin tanks and armoured vehicles. The initiative aims to give defence manufacturers a stable flow of work instead of short-term contracts. Industry experts have long argued that predictable orders are necessary for companies to invest in new production lines, skilled workers, and advanced technologies.
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Indian Army ₹75000 crore Fleet Modernization Programme: Focus on T-72 and T-90 Tank Upgrades
The programme includes the life-cycle enhancement of T-72 ‘Ajeya’ and T-90 ‘Bhishma’ main battle tanks, Infantry Combat Vehicles (ICVs), and Armoured Recovery Vehicles (ARVs). The goal is to restore these platforms to near full operational readiness by replacing worn-out mechanical, electrical, and electronic systems while significantly extending their service life.
Tanks to Receive Modern Equipment
Unlike routine maintenance, these upgraded tanks will retain their existing structures while receiving modern equipment. For the first time, many of these tanks are expected to be fitted with drones for intelligence, surveillance, reconnaissance, and combat support. The modernization reflects lessons learned from recent global conflicts, including the Russia-Ukraine war. The overhaul will also reduce dependence on imported spare parts by increasing the use of indigenous components.
790 T-72 Tanks to Be Restored
The first phase of the programme will restore 790 T-72 tanks over the next five years. The project is valued at more than ₹13,000 crore and will be executed by Armoured Vehicles Nigam Limited (AVNL) through its Vehicle Factory Jabalpur. Around 1,200 MSMEs and startups are expected to support the programme by supplying components and services. AVNL has already completed a pilot restoration of two T-72 tanks.
T-90 Tank Modernization Worth ₹56,000 Crore
The Army also plans to modernize 200 T-90 ‘Bhishma’ tanks over five years. This project is estimated to cost around ₹56,000 crore. Additionally, the modernization of 500 Infantry Combat Vehicles (BMPs) will cost nearly ₹5,000 crore and will be carried out by AVNL’s Ordnance Factory Medak, which has achieved more than 90% indigenisation in production.
Armoured Recovery Vehicles Also Included
The Army has approved the restoration of 230 Armoured Recovery Vehicles (ARVs) over five years at an estimated cost of ₹1,400 crore. These vehicles are manufactured by Bharat Earth Movers Limited (BEML) and play a critical role in recovering damaged tanks and repairing them during battlefield operations.
What is the Importance of Indian Army ₹75000 crore Fleet Modernization Programme
The five-year order pipeline is expected to strengthen India’s defence manufacturing ecosystem by:
- Providing long-term business visibility to defence companies.
- Encouraging investment in manufacturing capacity and technology.
- Supporting thousands of MSMEs and startups.
- Increasing indigenous production and reducing import dependence.
- Improving the operational readiness of the Indian Army’s armoured fleet.
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