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

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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 fire power, 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 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 Rs 7,523 crore, will provide further boost to the 'Make in India' initiative in defence sector and is a big step towards achieving 'Aatmanirbhar Bharat'," it said.

Prime Minister Narendra Modi had handed over the MBT Arjun Mk-1A to Chief of Army Staff General M M Naravane in Chennai on February 14, 2021.

The ministry said the tanks would ensure effortless mobility in all terrains, besides precise target engagement during day and night.

It has been designed and developed by the Defence Research & Development Organisation (DRDO) by incorporating numerous upgrades on Arjun MBT, the in-service main battle tank with the Indian Army.

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"The MK-1A is equipped with accurate & superior firepower, all-terrain mobility and an invincible multi-layered protection provided by an array of advanced technology systems. It can take on the enemy during day and night conditions and in both static and dynamic modes," the ministry said.