The Ministry of Defence signed a USD 248 million contract with Russian defence firm Rosoboronexport (RoE) to procure 1,000-horsepower (HP) engines for T-72 battle tanks in fully-assembled, completely knocked-down, and semi-knocked-down conditions.

The deal includes the Transfer of Technology (ToT) from the Russian defence manufacturer to Chennai-based Armoured Vehicles Nigam Limited (Heavy Vehicle Factory), for integration and subsequent licenced production of engines under ToT to boost the 'Make in India' initiative in the defence sector.

The T-72 is the mainstay of the tank fleet of the Indian Army which is at present fitted with a 780 HP Engine.

Equipping the existing fleet of T-72 Tanks with 1000 HP engines will enhance the battlefield mobility and offensive capability of the Indian Army.