MoD Signs ₹586 Crore Contract for Indigenous Auxiliary Power Units for T-72 & T-90 Tanks
The Ministry of Defence (MoD) has signed a ₹586 crore contract with Accurate Industrial Controls Private Limited for the procurement of indigenously developed Auxiliary Power Units (APUs) for the Indian Army’s T-72 and T-90 tanks.
The contract was signed in New Delhi on 21 September 2026 in the presence of Defence Secretary Shri Rajesh Kumar Singh. The Ministry stated that the induction of these indigenous APUs will strengthen the operational readiness, reliability and sustainability of the Indian Army’s Mechanised Formations.
What is an Auxiliary Power Unit (APU)?
An Auxiliary Power Unit (APU) is an alternate source of electrical power for a tank. It can supply power to important systems without relying entirely on the tank’s main engine for electrical generation.
According to the Ministry of Defence, the APUs covered under the new contract will support systems including:
- Fire control system
- Firing circuit
- Gun stabilisation system
- Other electrical and operational ancillaries of the tank
This makes the APU an important subsystem for maintaining the availability and functioning of critical tank equipment.
Why the ₹586 Crore Contract Is Important
The new procurement is significant because it concerns an important subsystem of India’s armoured platforms.
The Ministry of Defence has described the procurement as a step towards the indigenisation of critical sub-systems of armoured platforms. It also demonstrates the role of the Make-II framework in supporting industry-led research and development and translating indigenous technology into production and induction.
For India’s mechanised formations, dependable auxiliary power can support the operation of essential tank systems and contribute to overall equipment reliability and operational preparedness.
Indigenous APUs for T-72 and T-90 Tanks
The contract specifically covers APUs for two important tank platforms of the Indian Army:
T-72 Tank
The T-72 has been an important component of India’s armoured fleet for several decades. The platform has undergone various upgrades over its service life to improve its operational capabilities.
The introduction of an indigenous APU represents localisation of another critical subsystem associated with the platform.
T-90 Tank
The T-90 is another major armoured platform used by the Indian Army. Its advanced fire-control and stabilisation-related systems require reliable electrical power for effective operation.
The indigenous APU programme therefore forms part of the broader effort to strengthen domestic capabilities for supporting India’s armoured platforms.
Make-II: Promoting Indigenous Defence Technology
One of the important aspects of this ₹586 crore contract is its association with the Make-II framework.
Make-II is intended to encourage industry-led research, development and production of defence equipment. The MoD has said that this project demonstrates how indigenous innovation can move from development towards production and eventual induction into the Armed Forces.
This is particularly relevant for specialised components and subsystems where domestic development can gradually reduce dependence on external sources.
Boost to Aatmanirbhar Bharat in Defence
The APU contract is also aligned with the Government’s broader objective of Aatmanirbharta in Defence.
The Ministry stated that the agreement is aligned with the vision of Viksit Bharat @2047 and contributes to building a resilient, self-reliant and globally competitive Indian defence industry.
Indigenisation of components such as APUs can have significance beyond the individual procurement because it can help develop domestic expertise in:
- Defence engineering
- Specialised power systems
- Armoured vehicle subsystems
- Research and development
- Manufacturing and lifecycle support
What This Means for Indian Army Mechanised Formations
The Indian Army’s mechanised formations operate armoured platforms in demanding operational environments. The availability and reliability of critical subsystems are therefore important considerations in maintaining equipment readiness.
The MoD expects the indigenous APUs to enhance operational readiness, reliability and sustainability of the Army’s mechanised formations.
The procurement also demonstrates an approach in which indigenous technology developed by Indian industry is taken forward for military production and induction.
Auxiliary Power Units and Defence Indigenisation
The APU procurement is part of a larger effort to increase domestic capability across defence platforms.
Interestingly, an earlier Government document listing defence items for indigenisation included “Auxiliary Power Unit for T-72/90 Tank” among the identified items.
The signing of the ₹586 crore contract therefore represents a further step in converting the indigenisation objective for this subsystem into an actual procurement programme.
Key Details at a Glance
| Particular | Details |
| Ministry | Ministry of Defence |
| Contract Value | ₹586 crore |
| Company | Accurate Industrial Controls Private Limited |
| Equipment | Auxiliary Power Units (APUs) |
| Platforms | T-72 and T-90 Tanks |
| Date of Contract | 21 September 2026 |
| Location | New Delhi |
| Framework | Make-II |
| Purpose | Alternate electrical power for critical tank systems |
| Key Systems Supported | Fire control, firing circuit, gun stabilisation and other ancillaries |
| Broad Objective | Indigenisation and Aatmanirbharta in Defence |
Conclusion
The ₹586 crore MoD contract for indigenous Auxiliary Power Units for T-72 and T-90 tanks is an important development in the ongoing indigenisation of India’s armoured platform subsystems.
The project brings together Indian industry, defence research and production under the Make-II framework, with the stated objective of strengthening the operational readiness, reliability and sustainability of the Indian Army’s mechanised formations.
For India’s defence manufacturing ecosystem, the contract also illustrates how development of specialised subsystems can contribute to the broader objective of Aatmanirbhar Bharat in Defence.
Official Source
The Ministry of Defence/PIB press release was issued on 21 September 2026. Read the official PIB release
Disclaimer: This article is based on information released by the Ministry of Defence through the Press Information Bureau. It is intended for general information and does not represent an independent technical assessment of the APU system.