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Defence Ministry inks Rs 586-crore contract for tank power units

India's Defence Ministry has signed a major procurement deal for indigenous auxiliary power units designed to enhance the operational capability of the Army's battle tank fleet. The systems are expected to improve reliability and readiness across the armoured formations.

LSN India · 21 September 2026

The Defence Ministry has awarded a Rs 586-crore contract for the procurement of auxiliary power units (APUs) for the Indian Army's main battle tanks. The order marks another significant step in the government's push to boost domestic defence manufacturing and reduce reliance on imported components.

The indigenous auxiliary power units have been developed to strengthen the operational readiness and enhance the reliability of India's armoured vehicle fleet. These power systems are critical components that support various functions of battle tanks during combat and training operations.

The contract represents the Ministry's commitment to equipping the Army with modernized equipment through indigenous production capabilities. By prioritizing locally-manufactured systems, the procurement demonstrates the growing maturity of India's defence industrial base in producing specialized military hardware.

The auxiliary power units are expected to be integrated into the Army's existing tank inventory, ensuring improved performance and operational efficiency across armoured formations. The deal underscores ongoing efforts to maintain and upgrade the combat effectiveness of the armed forces through strategic defence acquisitions.