Tata emerges lowest bidder for Rs 20,000-crore Project Zorawar light tank; Mahindra to also develop prototype

Tata Advanced Systems Ltd (TASL) has emerged as the lowest bidder in a gruelling defence ministry contest to develop a next-generation light battle tank, beating four other entities vying for the key project valued at nearly ₹20,000 crore, said people familiar with the matter.

The Army’s Project Zorawar marks the first time a battle tank will be fully built by the private sector. It entails developing a new Armoured Fighting Vehicle-Indian Light Tank (AFV-ILT) capable of operating at very high-altitudes, besides marshlands and deserts.

The ministry has shortlisted TASL after a three-year selection process involving evaluation of technical and commercial bids, the people said. In the next stage, the Tata Group company will be tasked with developing and demonstrating two prototype tanks within 130 weeks.

The project is being implemented under the defence ministry’s Make 1 policy, which permits 70% government funding for project development. The second-lowest bidder, Mahindra Defence Systems, will also be invited to develop the prototype.

While TASL had emerged as the lowest bidder for the project last year, it is learnt that one of the competitors raised objections on the selection process. After detailed examination by the army and defence ministry, the objections were not found to be valid, and the process has now moved ahead to the stage of issuing of a Production Order (PO).

The step marks a milestone for Tata that has previously supplied tactical trucks and infantry fighting vehicles to the army. It also marks a natural progression to tracked, armoured systems, with Tata learnt to have offered the tank with an indigenous turret system and self-developed loitering munitions.