India Signs USD 61.7 Million (Rs 586 Crore) Contract for Indigenous Auxiliary Power Units for T-72 and T-90 Tanks.
India signs USD 61.7 million contract for APUs for MBT fleet.
India has signed a Rs 586 crore (USD 61.7 million) contract to equip its T-72 and T-90 tanks with indigenously developed Auxiliary Power Units, in a move aimed at improving the operational readiness and reliability of some of the Indian Army’s key armoured platforms.
The Ministry of Defence signed the contract with Accurate Industrial Controls Private Limited in New Delhi on 21 September 2026, in the presence of Defence Secretary Rajesh Kumar Singh.
While an Auxiliary Power Unit, or APU, may appear to be a relatively small component compared with a tank’s gun, armour or engine, it performs an important supporting role. It provides an alternative source of electrical power for several systems when the tank’s main engine does not need to be running.
The new procurement is therefore focused not on replacing India’s existing tanks, but on upgrading a critical subsystem that supports their ability to operate effectively.
What does an Auxiliary Power Unit do?
A modern main battle tank relies on considerably more than its engine and main gun.
Its fire control system, firing circuits, gun stabilisation system and other onboard equipment all require electrical power. Traditionally, running these systems while the tank is stationary can require the main engine to operate.
An APU provides an alternative source of electricity.
In practical terms, this allows the tank to power essential onboard systems without relying entirely on its main engine. This can be particularly useful when a vehicle is stationary for extended periods but still needs to operate surveillance, targeting, communications or other equipment.
The Ministry of Defence describes the APU as an alternate source of electrical power for the tank’s fire control system, firing circuit, gun stabilisation system and other ancillary equipment.
The significance of the new contract therefore lies in improving the support systems that allow the tank and its crew to perform their functions, rather than changing the tank’s basic combat architecture.
Why the upgrade matters for T-72 and T-90 tanks
The Indian Army operates large numbers of T-72 and T-90 tanks, making the reliability of their supporting systems important for its mechanised formations.
These formations are built around armoured vehicles and are intended to provide mobile firepower and protected mobility.
Keeping such forces ready for operations requires more than maintaining the vehicles themselves. Individual components and subsystems must also be reliable, available and capable of being supported over the life of the platform.
The induction of indigenous APUs is intended to strengthen what the Ministry of Defence calls the operational readiness, reliability and sustainability of India’s mechanised formations.
The contract therefore represents an upgrade to an existing fleet rather than the acquisition of an entirely new tank.
This approach can be particularly relevant for large, established fleets. Upgrading critical components can extend the usefulness of existing platforms while addressing specific operational requirements.
Indian Army’s T-90 MBT.
The importance of an indigenous system
One of the central features of the procurement is that the APUs have been indigenously developed.
That matters because defence platforms such as tanks contain numerous specialised components. Dependence on foreign suppliers for individual subsystems can create challenges involving availability, supply chains, maintenance and future upgrades.
Producing the APU in India gives domestic industry a greater role in supporting the Army’s existing armoured fleet.
The Ministry of Defence describes the procurement as a significant step towards the indigenisation of critical subsystems used on armoured platforms.
It also highlights the contract as an example of industry-led research and development under the government’s Make-II framework.
What is Make-II?
Make-II is designed to encourage Indian industry to develop defence equipment and systems, with the aim of turning indigenous technological ideas into products that can eventually be procured by the armed forces.
The model is particularly relevant for equipment that may require significant development before it is ready for large-scale military production.
In this case, the APU programme illustrates how a specialised requirement can move from indigenous research and development towards production and induction.
That is important because self-reliance in defence is not simply about assembling large platforms domestically. It also involves developing the components and technologies that allow those platforms to be maintained, upgraded and operated over time.
A small component with a wider logistical impact
The APU is not a weapon in the conventional sense. It does not increase the calibre of a tank’s gun or add another layer of armour.
Its value lies in supporting the systems that make the tank operational.
A reliable auxiliary power source can allow essential electrical equipment to function without requiring continuous use of the main engine. This can have implications for how a tank is operated, maintained and sustained.
For a large armoured formation, the cumulative effect of improving a subsystem across many vehicles can be more significant than the size of the individual component suggests.
It also provides the Army with a domestically supported solution for an important part of its tank fleet.
A step towards a more self-reliant defence industry
The contract fits into India’s wider effort to increase domestic defence production under the Aatmanirbhar Bharat initiative.
The government’s objective is to develop a defence industrial base capable of designing, producing and supporting a wider range of military equipment within the country.
That includes major platforms, but also less visible technologies such as power systems, electronics, sensors and other specialised components.
The APU contract illustrates this approach at the subsystem level.
For Indian industry, programmes of this kind can also create opportunities to develop expertise that can subsequently be applied to other military platforms.
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What the contract means for the Army
For the Indian Army, the immediate objective is straightforward: strengthen the reliability and readiness of its T-72 and T-90 fleets by introducing an indigenous auxiliary power capability.
The wider significance is more gradual.
As India seeks to maintain and modernise large armoured formations, the ability to produce critical components domestically could reduce dependence on overseas supply chains and improve long-term sustainment.
The Rs 586 crore contract is therefore not simply a procurement of auxiliary power units. It represents another step in the effort to make India’s existing armoured platforms more sustainable while building domestic expertise in defence manufacturing.
At a time when military readiness increasingly depends on reliable supply chains as much as on frontline equipment, such subsystems can play an important role.
For the T-72 and T-90 fleets, the new APUs are intended to provide that supporting capability. For India’s defence industry, the contract demonstrates how an indigenous development can progress into a production and induction programme — reinforcing the broader push towards a more self-reliant defence manufacturing ecosystem.
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