Cummins for supply of engines for indigenous light tanks, urgently needed to counter Chinese deployments in high altitudes.
The project to develop a light tank was approved last year, and Larsen and Toubro worked with Defence Research and Development Organisation to make a prototype. However, the project ran into trouble after a German firm, selected for engine supply based on its high power to weight ratio, failed to reach an agreement.
According to defence insiders, after several months of negotiations, the German company could not agree to supply the engines on time, even after the matter was taken up at the diplomatic level.
It delayed the light tank development process, following which a decision was taken to negotiate with American companies for the critical system and Cummins' offer was accepted.
The Army has estimated that it needs 354 light tanks in high altitude areas of Ladakh. L&T-DRDO will make 59 of them and the Army would look for other Indian companies to manufacture the remaining tanks after a bid.
The plan for developing the Indian light tank is named Project Zorawar.
The tank will have modern features like integration of artificial intelligence, drone warfare and active protection systems. The L&T-DRDO option is based on the chassis of the in service K9 Vajra self-propelled artillery that is made in India for the Army.
The light tank will be tasked to operate on all terrains, including high altitude areas and island territories and needs to be air-transportable for rapid deployment.