Rajnath Singh lays ₹472 crore T-72, T-90 tank overhaul facility foundation in Jabalpur
Synopsis
India's armoured fleet maintenance just got a closer home. The ₹472 crore T-72 and T-90 overhaul plant at Vehicle Factory Jabalpur ends the Army's long logistical haul to Tamil Nadu's Avadi for tank servicing — a quiet but operationally significant shift that also plugs Jabalpur deeper into India's Atmanirbhar Bharat defence ecosystem.
Key Takeaways
Defence Minister Rajnath Singh laid the foundation stone for a ₹472 crore tank overhaul facility at Vehicle Factory Jabalpur on 27 August 2025 .
The plant will overhaul and upgrade T-72 and T-90 tanks, starting with 12 T-72 tanks annually in its first phase.
The facility reduces dependence on the Heavy Vehicles Factory, Avadi (Tamil Nadu), cutting transportation time and logistics costs.
India's defence production has grown from ₹46,000 crore in 2014 to nearly ₹1.80 lakh crore ; exports rose from ₹1,000 crore to nearly ₹39,000 crore .
The government targets defence exports exceeding ₹50,000 crore by 2028-29 .
Jabalpur's four major defence units posted combined production of ₹4,622 crore in 2025-26 .
Defence Minister Rajnath Singh on 27 August 2025 laid the foundation stone for a ₹472 crore tank overhaul facility at Vehicle Factory Jabalpur (VFJ), marking a significant expansion of India's armoured fleet maintenance capacity. The new plant will handle comprehensive overhaul, repair, and technical upgradation of T-72 and T-90 battle tanks, reducing the Army's dependence on distant facilities for critical maintenance work.
What the Facility Will Do
The facility will undertake complete overhaul, repair, maintenance, and technical upgradation of T-72 and T-90 tanks, and will include a modern plant and a dedicated testing track for inspection and operational validation. In its first phase, VFJ will overhaul and upgrade 12 T-72 tanks annually, according to officials. The project builds on a successful pilot under which VFJ overhauled two T-72 tanks and handed them over to the Army after full inspection and component replacement.
Why Jabalpur Changes the Equation
'The plant at Jabalpur, being closer to Army field formations, will significantly reduce transportation time and logistical requirements for tank overhaul and maintenance, thereby enhancing operational efficiency and readiness,' Singh said at the ceremony. Currently, the Heavy Vehicles Factory at Avadi in Tamil Nadu handles the primary responsibility for overhauling T-72 tanks — a geographic constraint that adds time and cost to every maintenance cycle. A Jabalpur-based facility directly addresses that bottleneck.
Atmanirbhar Bharat and MSME Opportunity
Singh described the project as a step forward for India's defence self-reliance. 'This project marks an important step towards strengthening our defence preparedness and advancing the vision of Atmanirbhar Bharat in defence production,' he said. The facility is also expected to generate downstream opportunities for micro, small and medium enterprises (MSMEs) in manufacturing, ancillary services, and component supply, helping build a more resilient domestic defence supply chain.
India's Defence Production Surge
Singh highlighted the broader trajectory of India's defence sector, noting that domestic defence production rose from roughly ₹46,000 crore in 2014 to nearly ₹1.80 lakh crore in recent years. Defence exports climbed from approximately ₹1,000 crore to nearly ₹39,000 crore over the same period. The government has set a target of pushing defence exports beyond ₹50,000 crore by 2028-29.
Jabalpur's Growing Defence Footprint
Madhya Pradesh Chief Minister Mohan Yadav, along with other ministers and Bharatiya Janata Party (BJP) leaders, attended the foundation stone ceremony. Jabalpur already hosts several major defence production units; four key establishments in the city recorded a combined production value of ₹4,622 crore in 2025-26, with VFJ alone contributing around ₹1,056 crore. The new overhaul facility is expected to further cement Jabalpur's standing as a strategic defence manufacturing and maintenance hub.
Point of View
And the MSME supply chain Singh invokes still needs to be built, not just announced. The ₹472 crore investment signals intent; execution pace will determine whether it moves the needle on readiness.
NationPress
27 Aug 2026
Frequently Asked Questions
What is the T-72 and T-90 tank overhaul facility being built in Jabalpur?
It is a ₹472 crore defence project at Vehicle Factory Jabalpur (VFJ) that will carry out comprehensive overhaul, repair, maintenance, and technical upgradation of T-72 and T-90 battle tanks. The facility will include a modern plant and a testing track for operational inspection, and is expected to augment India's existing tank overhaul capacity.
Why is the Jabalpur location significant for tank maintenance?
Jabalpur is geographically closer to Army field formations than the Heavy Vehicles Factory at Avadi in Tamil Nadu, which currently handles primary T-72 overhaul work. The new facility will significantly cut transportation time and logistical costs, improving operational turnaround for the Army's armoured fleet.
How many tanks will the facility overhaul annually?
In its first phase, the Vehicle Factory Jabalpur will overhaul and upgrade 12 T-72 tanks annually, according to officials. The project follows a pilot in which VFJ successfully overhauled two T-72 tanks and handed them over to the Army after full inspection and component replacement.
How does this project fit into India's Atmanirbhar Bharat defence push?
Defence Minister Rajnath Singh described the facility as a step toward self-reliance in defence production. The project is expected to create downstream opportunities for MSMEs in manufacturing and component supply, helping build a domestic defence supply chain. India's defence production has grown from roughly ₹46,000 crore in 2014 to nearly ₹1.80 lakh crore in recent years.
What is India's defence export target and current status?
India's defence exports have risen from approximately ₹1,000 crore to nearly ₹39,000 crore between 2014 and recent years. The government has set a target of pushing exports beyond ₹50,000 crore by 2028-29, according to Defence Minister Singh.
