The Indian Army has taken another decisive step in strengthening its mechanised forces and reinforcing its commitment to self-reliance in defence by awarding two major contracts, cumulatively valued at approximately ₹2,565 crore (around $300 million), to the state-owned Armoured Vehicle Nigam Limited (AVNL).

The contracts cover the comprehensive overhaul of 40 frontline T-90 main battle tanks and 100 BMP-2 infantry combat vehicles, both of which form the backbone of India’s mechanised warfare capability.

The scope of the project involves complete refurbishment and overhaul of these legacy platforms, ensuring their continued relevance on the modern battlefield. For the T-90, which remains the spearhead of India’s armoured regiments, the overhaul process will likely include replacement of worn-out power packs, refurbishment of gun systems, electrical and fire-control recalibrations, and upgrades to electronics and communication subsystems.

A similar approach will be taken with the BMP-2 fleet, where the work may involve drivetrain restoration, refurbishment of weapon stations, improvement of amphibious features, and upgrades to vision devices, thermal imagers, and fire control systems. This deep-level maintenance will extend the operational life of these vehicles by several years while simultaneously enhancing their battlefield effectiveness.

Strategically, the contracts signify three major advantages for the Indian Army. First, they reinforce modernisation imperatives. By keeping the T-90 and BMP-2 platforms battle-ready through structured overhaul cycles, the Army ensures that its existing inventory continues to serve alongside newer-generation systems such as the forthcoming Future Infantry Combat Vehicle (FICV) and advanced tank projects.

This prevents capability gaps during induction transitions and maintains readiness across strike and pivot formations. Second, the decision advances the drive toward indigenisation. By awarding the entire contract to AVNL—a key enterprise under the Department of Defence Production—the project stimulates domestic capability in heavy armoured vehicle refurbishment and sustains India’s vision of Atmanirbhar Bharat (Self-Reliant India) in defence manufacturing.

This not only reduces dependence on foreign OEMs for mid-life upgrades and overhauls but also ensures that critical know-how, spares manufacturing, and repair infrastructure are consolidated within the country.

Finally, the move contributes directly to operational readiness in a volatile strategic environment. Given the ongoing security dynamics along the northern and western borders, particularly vis-à-vis Pakistan and China, ensuring maximum availability of the Army’s mechanised assets is vital.

Overhauling these platforms enhances their reliability, reduces maintenance downtimes during deployment, and ensures combat availability during critical periods of escalation. In addition, refurbishing vision and fire-control aids on BMP-2s heightens infantry-armour coordination and improves situational awareness in all-weather conditions, while revitalised T-90 platforms sustain the Army’s ability to project decisive offensive power.

For AVNL, the award of back-to-back high-value orders establishes its role as a central pillar in India’s armour ecosystem. Formed after the corporatisation of the Ordnance Factory Board, AVNL has increasingly been entrusted with managing T-72, T-90, and BMP-2 production, spares, and repair functions, thereby making it not just a manufacturing entity but also the long-term lifecycle partner of the Indian Army.

These contracts further validate its emerging dominance in the domestic armoured solutions segment and position it well for future modernisation-driven opportunities such as the FICV and next-gen light tank initiatives.

In essence, the ₹2,565 crore contracts mark a critical convergence of modernisation, indigenisation, and readiness. They reaffirm the Army’s balanced approach of sustaining current war-fighting assets while simultaneously preparing for next-generation inductions, all under the larger umbrella of building sovereign defence capabilities.

With this, both the Army and India’s fledgling defence public sector are moving in tandem to create a more resilient, responsive, and self-reliant base for armoured warfare in the decades ahead.

IDN (With Agency Inputs)