The Defence Acquisition Council (DAC) on Tuesday approved procurement of 1,000 engines for fitment in T-72 tanks of the Army at an approximate cost of over Rs 2,300 crore, the Defence Ministry said in a statement.
In addition to this, the DAC also approved several amendment to Defence Procurement Procedure(DPP)-16, the manual governing such procurement.
The significant changes include limiting the time period for executing repeat order to five years after the date of completion of warranty of final delivery in the previous contract.
Repeat order provisions have also been extended to procurement by other services such as the Central Armed Police Force (CAPF) and Border Roads Organisation (BRO).
"The DAC also accorded approval for procurement of 1,000 engines of 1,000 BHP (brake horse power) for fitment in T-72 tanks of the Army under 'Buy & Make' category and at an approximate cost of over Rs 2,300 crore," the statement said.
Post transfer of technology, most of these engines will be manufactured by Ordnance Factories Board (OFB).
The engines will enhance mobility, agility and acceleration of T-72 tanks making them more versatile and effective in the battlefield, the statement said.