New Delhi, Aug 27. Defence Minister Rajnath Singh and Madhya Pradesh Chief Minister Mohan Yadav laid the foundation stone for a new facility to overhaul T-72 and T-90 tanks at the Vehicle Factory in Jabalpur, marking another step towards strengthening India’s indigenous defence maintenance and manufacturing capabilities.
The project, estimated to cost ₹472 crore, is being undertaken by Armoured Vehicles Nigam Limited (AVNL), a Mini Ratna defence public sector undertaking. The new facilities are designed to overhaul 80 tanks every year, helping ensure the timely availability of refurbished armoured platforms to the Indian Army and strengthening its operational preparedness.
The Army requires around 230 tanks to be overhauled annually. At present, the Heavy Vehicles Factory (HVF) in Avadi has the capacity to overhaul 150 tanks a year. The Jabalpur facility will therefore help bridge the existing capacity gap.
Addressing the gathering on August 27, Singh said the project reflected India’s expanding technological and industrial capabilities and would contribute to the country’s ambition of becoming a major global centre for defence manufacturing and exports.
He noted that advances in drones, precision-guided weapons, missiles, satellites, artificial intelligence and cyber warfare have transformed the character of modern conflicts, but argued that tanks continue to have an important role on the battlefield.
“Modern warfare demands combined capabilities rather than dependence on a single platform,” Singh said, stressing the need to integrate tanks with infantry, artillery, drones, air power, surveillance and precision weapons.
He said Indian tanks would need enhanced sensors and other capabilities suited to modern battlefield requirements. The government, he added, is working towards equipping the armed forces with drones, missiles, artillery, electronic warfare systems, directed-energy weapons and modernised tanks while ensuring their seamless integration.
The new overhaul facility, Singh said, would support this broader effort to modernise India’s armoured capabilities.
Highlighting the contribution of HVF Avadi, the Defence Minister said the facility had supplied around 4,400 tanks to the Indian Army over the past four decades. He said the new project would further strengthen Jabalpur’s position as a centre for defence technology, maintenance, modernisation and manufacturing.
AVNL has around 25 years of experience in overhauling T-72 and T-90 variants. Singh expressed confidence that the new facility would help the company improve quality, productivity and innovation while enhancing its competitiveness in the global defence market.
The project also has an important industrial dimension. The overhaul facilities are expected to generate demand for mechanical, electrical, electronic and hydraulic components, assemblies and subsystems, creating opportunities for micro, small and medium enterprises (MSMEs).
Greater participation by local manufacturers and ancillary units is expected to strengthen domestic supply chains and help create a more resilient defence-industrial ecosystem around Jabalpur. The project is also likely to generate employment opportunities in the region for workers, young people and small entrepreneurs.
Singh linked the initiative to the government’s broader ‘Aatmanirbhar Bharat’ (Self-reliant India) push in defence. He said India’s defence production had risen to around ₹1.80 lakh crore in 2025-26, from about ₹46,000 crore in 2014, while defence exports had increased to approximately ₹39,000 crore from less than ₹1,000 crore during the same period.
He stressed that changing warfare had made technological superiority, resilient supply chains, industrial capacity and innovation increasingly important. India, he said, must ensure that its armed forces do not remain dependent on foreign supply chains for critical requirements.
“The aim is to manufacture defence equipment domestically, undertake repair and maintenance within the country, upgrade existing systems with modern technologies, and develop next-generation capabilities indigenously,” Singh said.
The Defence Minister also praised Madhya Pradesh’s efforts to attract investment in industry and defence manufacturing. He cited initiatives such as the Global Investors Summit 2025, the Invest MP 3.0 approval system and industry-friendly policies as factors strengthening the state’s investment environment.
He said plans for defence manufacturing across 3,073 hectares in the Gwalior-Chambal region, along with proposed investments of more than ₹16,960 crore, could help establish Madhya Pradesh as a major defence and aerospace manufacturing hub.
Yadav welcomed the investment in Jabalpur, saying it would strengthen the state’s defence ecosystem and increase opportunities for MSMEs. He also highlighted India’s growing global standing and its preparedness to meet emerging security challenges.
Secretary (Defence Production) Sanjeev Kumar, AVNL Chairman and Managing Director Satyabrata Mukherjee, and senior officials from the Department of Defence Production, AVNL and the armed forces attended the event.
