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The Indian Army is taking a significant step towards modernizing its armored forces with the Future Ready Combat Vehicle (FRCV) program. This ambitious initiative aims to replace the ageing T-72 tanks with a modern, indigenously developed main battle tank (MBT).
To ensure the success of this program, the Army is actively courting private sector companies and promising a financially viable production plan, learning from the challenges faced during the Arjun MBT program.
A key concern for private companies participating in defence projects is the financial viability of long-term production. The Arjun MBT program, which spanned over three decades, saw a limited order book of fewer than 250 units. This limited production run hindered economies of scale and made it difficult for involved companies to recoup their investments.
To address this concern, the Indian Army has assured potential bidders in the FRCV program a guaranteed production run of 1,650 units, divided into three batches of 550 MBTs each. This commitment ensures a robust procurement plan and offers financial viability for participating private sector companies.
By structuring the program this way, companies are expected to break even after the delivery of the first batch, mitigating financial risks and encouraging substantial investments in development and production.
The Army plans to replicate the successful development model used for the Advanced Towed Artillery Gun System (ATAGS) program. This approach involves allowing multiple private sector players to develop and test their own MBT prototypes based on shared design and technology guidelines. This fosters competition and ensures the selection of the best possible product.
Each participating company will receive funding and access to technology and designs, creating a level playing field and enabling firms to introduce their own modifications and innovations. This will provide the Army with a range of options during the final selection process.
While it remains to be seen whether private Indian firms will be allowed to form joint ventures with foreign Original Equipment Manufacturers (OEMs), the possibility could significantly enhance the program's potential.
Collaborations with global tank manufacturers could provide access to cutting-edge technologies and manufacturing expertise, accelerating development timelines and ensuring the final MBT meets international standards.
The FRCV program is a cornerstone of India's "Aatmanirbhar Bharat" (Self-Reliant India) initiative in the defence sector. Unlike the Arjun MBT program, which suffered from limited orders and delays, the FRCV project is designed to create a sustainable and competitive ecosystem for tank manufacturing in India.
By engaging private sector players and ensuring financial viability, the Indian Army aims to foster innovation and efficiency, resulting in a world-class MBT that meets its operational requirements and strengthens India's defence capabilities.
