Defence Ministry Signs ₹586 Crore Contract for APUs for T-72, T-90 Tanks

The Ministry of Defence has signed a ₹586 crore contract with Accurate Industrial Controls Private Limited for Auxiliary Power Units (APUs) for the Indian Army’s T-72 and T-90 tanks. 

As per news reports, the agreement was signed in New Delhi on September 21, 2026, in the presence of Defence Secretary Rajesh Kumar Singh. The APUs covered under the contract have been developed in India. 

What the APUs Will Do 

The APUs will provide an alternate source of electrical power for tank systems. These include the fire control system, firing circuit, and gun stabilisation system, as well as other ancillary equipment. 

The units are intended to support the operation of these systems without relying only on the tank’s main power source. The procurement is also aimed at reducing dependence on imported critical sub-systems. 

Procurement Under Make-II 

The contract has been placed under the Make-II framework, which covers industry-led research and development projects. The agreement adds another indigenous component to the equipment used by the Army’s armoured platforms. 

The procurement is part of a wider series of measures to increase the involvement of Indian companies in defence manufacturing and production. 

Other Recent Defence Orders 

The contract comes as the government moves ahead with several defence procurement and manufacturing initiatives. The Defence Acquisition Council recently cleared proposals worth ₹1.10 lakh crore for the three armed forces. 

The proposals include new high-mobility vehicles, additional advanced light helicopters, and upgrades for existing fighter aircraft. The services will now proceed with the acquisition process. 

Focus on Domestic Production 

On September 18, 2026, Hindustan Aeronautics Limited handed over two LCA Tejas FOC twin-seater trainers and three HTT-40 basic trainers to the Indian Air Force. It also handed over four Dhruv Next Generation helicopters to Pawan Hans. 

In August, Defence Minister Rajnath Singh approved the transfer of technology for all conventional missile systems developed by DRDO to Indian defence companies for production in India. 

Read More: MSME Credit Grows 12.5% to ₹47.4 Trillion, Small and Medium Firms Lead! 

Conclusion 

The ₹586 crore agreement covers APUs for the Army’s T-72 and T-90 tanks. It also adds to recent defence procurement measures involving domestic companies and indigenously developed equipment. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Turn insights into action - Open Free Demat Account with Angel One and start investing instantly.