By N. C. Bipindra

New Delhi: The Indian Army has zeroed in on private sector Tata and Mahindra to develop prototypes of a light battle tank under a ₹20,000-crore Indian Army project. The decision, yet to be formally announced, comes after a tiring three-year bidding process and politics over selection procedures that delayed the development project.

Over a year ago, Tata Advanced Systems Limited (TASL) emerged as the lowest bidder for the light tank project, ahead of four other Indian entities interested in bagging the contract, the Economic Times reported on Sep. 9, 2026. But one of the losing entities had raised official objections to the selection process, causing delays in the light tank programme moving to the production stage.

After the Army and Ministry of Defence investigations rejected the objections, the light tank project is now moving forward, overcoming the hurdles. With the TASL now set to receive a production order, this will be the first time any private company in India manufactures a battle tank on its own. 

Till now, only the state-run ordnance factories were nominated to produce battle tanks, be it the Russian-origin T-72 or T-90s, or the indigenous Arjun tanks. The next-generation Zorawar light battle tank project has effectively moved out of the state-run ordnance factories, with the procurement process envisaging private-sector participation in manufacturing the armoured fighting vehicles for the Army.

Apart from TASL, the second-lowest bidder, Mahindra Defence Systems (MDS), is also expected to get the orders to develop two prototypes of the Armoured Fighting Vehicle – Indian Light Tank (AFV-ILT) within the next 130 weeks. The AFV-ILT project will follow the Defence Acquisition Procedures (DAP) Make-I category route of product development, under which the government would provide 70% funding.

The Army project envisages the development of an AFV-ILT that can operate at high-altitude battlefields, such as the Ladakh region bordering China-occupied Tibet, apart from marshlands and desert regions.   Between 2020 and 2024, the Indian Army was engaged in a bitter military conflict with the Chinese People’s Liberation Army in the Ladakh region, when the need for light battle tanks was felt. India had to lift heavier T-72 and T-90 battle tanks to Ladakh during the peak of the conflict with the PLA to match their armoured vehicle deployments.

The Zorawar tanks, which were developed by the Defence Research and Development Organisation (DRDO), jointly with the private sector Larsen & Toubro (L&T), were already tested in the Ladakh region in recent years. The Army has given feedback to the DRDO-L&T team for improvements in the Zorawar tanks after their field trials in Ladakh, according to Army officers with knowledge of the matter.

Tata has previously supplied tactical trucks and infantry fighting vehicles to the Army. The light tank project is a natural next step for the company to become a supplier of tracked armoured fighting vehicles now.

The ET report said TASL has offered an indigenous turret. ET correspondent Manu Pubby posted on X that TASL’s indigenously designed and developed light tanks will fall in the 25-ton weight category, along with a 105mm to 125mm main gun, long-range anti-tank and anti-helicopter missiles, and 2,00-metre firing-on-the-move performance.

His post said the other technologies on offer would include drone-aircraft-helicopter network connectivity, frontal STANAG-6 and roof protection on the tanks. He also posted that the Army was pursuing a two-pronged approach to the light tanks project, with 295 vehicles under the Make-I project to be manufactured by TASL or MDS, based on their prototypes clearing trials and evaluations, while another 59 tanks to be produced by the DRDO-L&T combine under their Zorawar tanks project. The DRDO-L&T may eventually also compete for the 295 light tanks order.

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