India signs $248 million Tank Engine Deal with Russia’s Rosoboronexport: New Delhi, March 7, 2025 – In a significant move to enhance its armored capabilities, the Indian Ministry of Defence has finalized a $248 million contract with Rosoboronexport (RoE) of the Russian Federation for the procurement of 1000 horsepower (HP) engines for its T-72 main battle tanks. The agreement, announced today, marks a substantial upgrade for the Indian Army’s mainstay tank fleet, promising improved battlefield mobility and offensive power.
The contract encompasses the delivery of engines in various stages of assembly, including fully formed, completely knocked down (CKD), and semi-knocked down (SKD) conditions. This multi-faceted approach ensures a steady influx of upgraded engines while simultaneously laying the groundwork for indigenous production.
A critical component of the deal is the Transfer of Technology (ToT) from RoE to Armoured Vehicles Nigam Limited (Heavy Vehicle Factory) in Avadi, Chennai. This ToT will enable the integration and subsequent licensed production of the 1000 HP engines within India, aligning with the government’s “Make in India” initiative in the defence sector. By localizing production, India aims to reduce its dependence on foreign suppliers and foster a self-reliant defence industrial base.
The T-72, currently equipped with 780 HP engines, forms the backbone of the Indian Army‘s armored forces. The upgrade to 1000 HP engines will significantly enhance the tank’s mobility, allowing it to traverse challenging terrains and respond more effectively to battlefield demands. This increased power will directly translate to improved offensive capabilities, ensuring the T-72 remains a formidable asset in India’s defence arsenal.
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Indian Army’s T-72 MBT.
Transfer of Technology: Self-Reliant India in Defence
The inclusion of Transfer of Technology (ToT) for the engine production is a critical element of the agreement. This ToT will enable Armoured Vehicles Nigam Limited (Heavy Vehicle Factory) to acquire the necessary technical expertise and manufacturing capabilities to produce the 1000 HP engines indigenously. This move will not only reduce India’s reliance on foreign suppliers but also contribute to the development of a robust domestic defence industrial base.
The ToT encompasses the transfer of design, manufacturing, and maintenance know-how, ensuring that India can sustain and upgrade its tank fleet independently. This will also empower the nation to adapt and innovate, creating future generations of engines that meet the evolving needs of the Indian Army. The local production of these engines will also reduce the cost of maintenance and spare parts, saving the Indian government money over the lifespan of the T-72 fleet.
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India-Russia Sign T-72 Tank Engine Deal. (March 7, 2025, New Delhi).
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India-Russia Defence Cooperation Remains Strong
The engine deal further solidifies the long-standing defence partnership between India and Russia. This relationship, spanning decades, has seen Russia emerge as a primary supplier of military hardware to India. From fighter jets and submarines to tanks and missile systems, Russian technology has played a crucial role in modernizing the Indian armed forces. Despite India’s diversification of its defence procurement in recent years, Russia remains a key strategic partner, particularly in areas requiring advanced technology and proven reliability. This deal demonstrates that even as India moves towards more indigenous production, the relationship with Russia for key components and technology transfer remains a vital part of India’s defence strategy.
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The T-72: A Legacy of Reliability in Indian Service
The T-72 tank, originally a Soviet-designed main battle tank, has been a cornerstone of the Indian Army’s armored forces for decades. Acquired in large numbers, the T-72 has proven its robustness and reliability in diverse operational environments. It has undergone several upgrades over the years to enhance its firepower, protection, and mobility. However, the need for a more powerful engine to tackle modern battlefield demands and challenging terrains became apparent. The current upgrade to 1000 HP engines is a testament to the T-72’s enduring relevance and India’s commitment to maintaining its combat effectiveness. The T-72 has been a reliable platform for India, and this engine upgrade will ensure that it remains a potent force for years to come.