Rajnath Singh lays foundation stone for ₹472-crore tank overhaul facility in Jabalpur
The foundation stone was laid for a ₹472-crore facility at Vehicle Factory Jabalpur (VFJ), Madhya Pradesh, to overhaul T-72 and T-90 main battle tanks of the Indian Army.
The new facility is designed to overhaul 80 T-72 and T-90 tanks annually, adding to the Heavy Vehicles Factory (HVF), Avadi's existing capacity of around 150 tanks a year.
The Indian Army requires the overhaul of roughly 230 such tanks every year; the combined VFJ-Avadi capacity is intended to close this gap.
The project was described as strengthening India's self-reliance in defence maintenance, and Jabalpur's proximity to Army field formations is expected to cut transportation time and logistics costs for tank overhaul.
Corporatisation of the Ordnance Factory Board (2021) and Armoured Vehicles Nigam Limited (AVNL)
Vehicle Factory Jabalpur, established in 1969 as an ordnance unit, is now run by Armoured Vehicles Nigam Limited (AVNL), one of seven defence public sector undertakings (DPSUs) created when the government dissolved the Ordnance Factory Board (OFB) effective 1 October 2021 and transferred its 41 units, assets, and employees to these new PSUs.
Key Details
- The seven successor DPSUs are: Munitions India Limited (MIL), Armoured Vehicles Nigam Limited (AVNL), Advanced Weapons and Equipment India Limited (AWEIL), Troop Comforts Limited (TCL), Yantra India Limited (YIL), India Optel Limited (IOL), and Gliders India Limited (GIL).
- The corporatisation was approved under the "Atmanirbhar Bharat" (self-reliant India) package announced in May 2020, aimed at improving autonomy, accountability, and production efficiency compared to the departmental OFB structure.
- AVNL specifically handles design, development, production, and overhaul of armoured fighting vehicles, including the T-72 Ajeya and T-90 Bhishma tank fleets.
- The reform has coincided with a financial turnaround for these units — from a combined loss in 2019-20 to reported net profits in subsequent years.
The Jabalpur overhaul facility is an AVNL project, illustrating how the corporatised structure is being used to expand indigenous maintenance, repair, and overhaul (MRO) capacity for the Army's tank fleet rather than relying on a single centralised workshop.
T-72 Ajeya and T-90 Bhishma — India's Main Battle Tank Fleet
The T-72 and T-90 are Russian-origin main battle tanks that form the core of India's armoured corps, inducted respectively from the 1980s (T-72, license-built as "Ajeya") and from 2001 (T-90S, as "Bhishma"), with later variants license-manufactured in India.
Key Details
- Periodic overhaul extends a tank's service life by an estimated 10-15 years and typically involves replacing or refurbishing major assemblies such as the engine, gun barrel, and fire control system.
- Overhaul programmes have also been used to fit upgrades such as improved fire-control systems and thermal imaging sights, distinguishing overhaul (life extension plus partial modernisation) from full mid-life upgrade programmes.
- Both tank types are maintained primarily by DPSU/Army Base Workshop facilities rather than being decommissioned once their initial service life ends, reflecting India's cost-sensitive approach to fleet sustainment.
The new facility specifically targets T-72 and T-90 overhaul, addressing a maintenance backlog for two of the Army's largest armoured platforms and reinforcing indigenous life-extension capability rather than import dependence.
Make in India / Atmanirbhar Bharat in Defence Manufacturing
Defence indigenisation policy since 2014 has progressively restricted imports of specified defence items through "Positive Indigenisation Lists" and promoted domestic production and maintenance infrastructure, of which DPSU-run overhaul facilities are one component.
Key Details
- The Defence Acquisition Procedure (DAP) 2020 prioritises indigenous content and categories such as "Buy (Indian-IDDM)" for domestically designed, developed, and manufactured equipment.
- Successive Positive Indigenisation Lists issued by the Ministry of Defence since 2020 have placed increasing numbers of sub-systems, components, and services (including MRO-related items) under domestic sourcing mandates.
- Locating maintenance and overhaul infrastructure closer to field formations (as with Jabalpur relative to northern/central Army deployments) is a recognised element of reducing turnaround time for military hardware readiness.
The Jabalpur facility is framed as part of this broader indigenisation push, expanding domestic overhaul capacity rather than depending on a single facility or imported maintenance support.
- Project cost: ₹472 crore.
- Location: Vehicle Factory Jabalpur (VFJ), Madhya Pradesh; established in 1969.
- New facility capacity: 80 T-72/T-90 tanks overhauled annually.
- Existing capacity at Heavy Vehicles Factory, Avadi: approximately 150 tanks annually.
- Estimated annual Army requirement for tank overhaul: approximately 230 tanks.
- OFB dissolved and replaced by 7 DPSUs effective: 1 October 2021 (announced May 2020 under Atmanirbhar Bharat).
- DPSU managing VFJ: Armoured Vehicles Nigam Limited (AVNL).