New overhaul line to add 80-tank annual capacity at Vehicle Factory, Jabalpur
Jabalpur — Union Defence Minister Rajnath Singh and Madhya Pradesh Chief Minister Dr Mohan Yadav on Thursday performed the bhoomi pujan for a new tank overhauling project at the Vehicle Factory, Jabalpur, a unit of Armoured Vehicles Nigam Limited (AVNL). The project, estimated at ₹472 crore, will create facilities to overhaul T-72 and T-90 main battle tanks and is expected to refurbish 80 tanks annually.
The new capacity is intended to bridge a long-standing gap between the Army's stated annual overhaul requirement of 230 tanks and existing throughput. At present, the Heavy Vehicles Factory (HVF), Avadi, handles about 150 tanks per year. With the Jabalpur addition, annual national overhaul capacity will reach the Army's stated requirement of 230 tanks, according to official statements released during the ceremony.
“Modern warfare demands combined capabilities rather than dependence on a single platform,”
said Defence Minister Rajnath Singh, emphasising that tanks remain a crucial component of integrated combat systems alongside drones, artillery and surveillance assets. He described the project as beneficial both for soldiers’ operational readiness and for generating employment in Jabalpur and surrounding areas.
Industrial and local economic implications
Project planners and ministry releases highlighted the potential for local industry participation. The overhaul facilities will require a wide range of mechanical, electrical, electronic and hydraulic components, assemblies and subsystems — creating demand that can be met by micro, small and medium enterprises (MSMEs). The sourcing of such items locally is expected to strengthen supply chains and bolster ancillary manufacturing and service providers in and around Jabalpur.
- Employment: Officials said the initiative will open jobs for skilled workers, technicians, small entrepreneurs and others in the region.
- MSME opportunities: Demand for components and subsystems could increase orders for local suppliers and vendors.
- Operational readiness: Increasing overhaul capacity aims to ensure timely availability of refurbished tanks to the Indian Army.
Capacity numbers at a glance
| Location | Annual Overhaul Capacity |
|---|---|
| Heavy Vehicles Factory, Avadi | 150 |
| Vehicle Factory, Jabalpur (new) | 80 |
| Total (post-project) | 230 (matches Army requirement) |
Vehicle Factory, Jabalpur is part of Armoured Vehicles Nigam Limited, a Mini Ratna defence public sector undertaking formed after the restructuring of the Ordnance Factory Board in 2021. The Jabalpur unit’s new role in overhauling both T-72 and T-90 series tanks adds to its profile within the defence manufacturing ecosystem.
Officials noted the strategic context: the long-serving T-72 Ajeya fleet, first inducted in the late 1970s, is likely to remain in service beyond its intended life, making periodic overhauls necessary. While the Defence Acquisition Council has approved the acceptance of necessity for a future replacement platform, the Future Ready Combat Vehicle (FRCV) programme has not finalised bids and remains a long-term prospect.
Local stakeholders in Jabalpur, including suppliers and workforce training organisations, will watch the project’s implementation closely. Increased demand for parts, maintenance skills and allied services could stimulate vocational training and local enterprise development, with downstream benefits for farmers and workers in the district who seek wage employment or entrepreneurial opportunities during and after construction.
The bhoomi pujan ceremony underscores the central government’s emphasis on strengthening domestic defence industrial capacity and integrating local industry into defence supply chains. Construction timelines, detailed procurement plans and the phased deployment schedule for the overhaul line were not specified in the ministry release.
