The Defence Ministry on Thursday sealed a contract to procure 118 Main Battle Tanks (MBTs) Arjun for the Indian Army at a cost of ₹ 7,523 crores, in a major move to boost its combat capabilities.

The defence ministry placed the order for the Arjuna Mk-1A tanks with the Heavy Vehicles Factory (HVF), Avadi, Chennai.

The MBT Mk-1A is a new variant of Arjun Tank designed to enhance firepower, mobility and survivability, infused with 72 new features and more indigenous content from the Mk-1 variant

"The Ministry of Defence (MoD) placed an order with Heavy Vehicles Factory (HVF), Avadi, Chennai for the supply of 118 Main Battle Tanks (MBTs) Arjun Mk-1A for the Indian Army on September 23," the ministry said in a statement.

"The order, worth ₹ 7,523 crores, will provide a further boost to the "Make in India" initiative in the defence sector and is a big step towards achieving "Aatmanirbhar Bharat"," it said.