On August 27, 2026, Defence Minister Rajnath Singh laid the foundation stone for a major T-72 and T-90 tank overhaul facility at the Vehicle Factory Jabalpur (VFJ) in Madhya Pradesh.
The ceremony, which was also attended by Chief Minister Mohan Yadav, marks a crucial step in maintaining the combat readiness of India's heavy armoured forces.
Addressing the event, the Defence Minister highlighted the strategic benefits of establishing this maintenance hub in central India.
Because Jabalpur is situated closer to the deployment zones of various army field formations, the new plant will substantially reduce the transportation time and complex logistical efforts historically required to move tanks for essential repairs.
For decades, the Heavy Vehicles Factory (HVF) in Avadi, near Chennai, has served as the primary centre for manufacturing and overhauling Russian-origin Main Battle Tanks (MBTs) under license.
Both HVF Avadi and VFJ operate under the umbrella of the state-owned miniratna defence public sector undertaking, Armoured Vehicles Nigam Limited (AVNL).
However, the Indian Army requires approximately 230 tanks to be overhauled every year, while HVF Avadi can only process 150 units annually.
To resolve this critical maintenance deficit, the new Jabalpur facility will add the capacity to overhaul exactly 80 MBTs each year, completely fulfilling the Army's annual requirements.
The project is being developed at a cost of ₹472 crore (approximately US$50 million) and is being entirely financed through AVNL’s internal corporate funds.
India currently sustains a massive legacy fleet of roughly 3,700 T-72M/M1 'Ajeya' and T-90S/SK 'Bhishma' tanks.
During the inauguration, Rajnath Singh emphasised that despite the rise of drones and artificial intelligence, main battle tanks remain an essential "iron wall" on the borders, especially when operating within the Army's modern Integrated Battle Groups.
The overhaul operations at VFJ will also boost the regional economy by integrating local Micro, Small, and Medium Enterprises (MSMEs) into the supply chain for hydraulic, electronic, and mechanical tank components.
This new capacity at Jabalpur aligns with broader efforts to extend the service life of India's armoured reserves.
In February 2026, the Ministry of Defence officially cleared comprehensive overhaul programmes for T-72 tanks, BMP-2 infantry fighting vehicles, and armoured recovery vehicles to ensure these combat systems remain reliable for years to come.
In parallel with these structural overhauls, India is upgrading the mobility and power of its older tanks.
In March 2025, a US$248 million agreement was signed with Russia’s Rosoboronexport to procure advanced 1,000-horsepower engines for the T-72 MBTs.
The contract covers the delivery of fully assembled engines as well as partially and completely knocked-down kits. It also includes a technology transfer agreement that will eventually allow HVF Avadi to produce the engines domestically under license.
