New Delhi, March 7 : The Ministry of Defence has signed a $248 million contract with Russia's Rosoboronexport for the procurement of more powerful 1000 HP Engines for T-72 tanks of the Indian Army, in fully formed, completely knocked down and semi knocked down conditions.

The deal also includes Transfer of Technology (ToT) from Rosoboronexport to Armoured Vehicles Nigam Limited (Heavy Vehicle Factory), Avadi, Chennai, for integration and subsequent licensed production of engines under ToT to boost the "Make in India" initiative in the defence sector.

The T-72 is the mainstay of the Indian Army's tank fleet which is at present fitted with 780 HP Engine. Equipping the existing fleet of T-72 Tanks with 1000 HP Engine will enhance the battlefield mobility and offensive capability of Indian Army, the Defence Ministry said.

On the back of strong government support India's defence production reached a record high of Rs 1.27 lakh crore in 2023-24, this represents a 174 per cent increase from Rs 46,429 crore in 2014-15. The country aims to reach Rs 3 lakh crore in defence production by 2029.

Defence Minister Rajnath Singh recently said that India's Aatmanirbhar drive was 'yielding the desired results' and the country was poised to reach Rs 50,000 crore in defence exports by 2029-30.

Rajnath Singh said that the government's efforts of achieve self-reliance are turning out to be highly successful as defence exports, which were around just Rs 600 crore 10 years ago, crossed a record number of Rs 21,000 crore in Financial Year 2023-24. He exuded confidence that the progress will continue and defence exports will reach Rs 50,000 crore by 2029-30.

Driven by strong government support and increasing private sector participation, India's defence sector production is set to grow at a compound annual growth rate (CAGR) of around 20 per cent during FY24-FY29, according to a CareEdge Ratings report.

The collaboration between government and private sector entities in India's defence sector has driven advancements in arms and ammunition, aerospace, electronics, and Naval technologies.

This collaboration has been supported by policies such as 'Make in India' and liberalised FDI norms, which have enhanced domestic manufacturing capabilities, attracted international investments in defence innovation and driven notable growth in exports of military equipment, the report points out.

/IANS