"There is no question of abandoning the prestigious project," Antony said. "It is the country's first effort to produce such complex war machines and there are bound to be hiccups".

The minister's remarks come in the backdrop of Government informing Parliament on Monday that the tanks were found to have "low accuracy", frequent break down of power packs and problems with its gun barrel in the recent accelerated user-cum-reliability trials.

The tanks also had problems with consistency and recorded failure of hydro-pneumatic suspension units and shearing of top rolls, Government informed the Lok Sabha.

"The rectification of these defects and performance of the tanks were being closely monitored," Antony said.

Antony said there was some delay in the issue of tanks to the army due to design modifications and removal of defects noticed during various trials. He said the manufacture of the tank was being monitored by a team headed by Director General of Mechanised forces and a steering committee under the chairmanship of the Secretary Defence Production and Scientific Advisor to the Defence Minister.

The Defence Minister said the target was to produce 85 Arjun tanks cumulatively up to 2007-08. But till March 31 this year, only 14 tanks had been modified and supplied to army, which has made operation one squadron of the tanks with 43 armoured regiment.

"Further 39 tanks have been assembled at Avadi plant and another 33 are under various advanced stages of production," Antony said.

The Defence Minister said these formed part of the indent placed by Army headquarters for 124 MBT Arjuns with Ordnance Factory Board. "Fresh comparative and other trials would be carried out before the Avadi Heavy Vehicle Factory is accorded clearance for the bulk production of the remaining tanks," Antony said.

He also said that DRDO and the Ordnance Factory Board were already working on the MarkII upgraded version of the Arjun tanks which would be lighter in weight and more versatile.

Summing up the recent controversy over army rejecting the tanks due to their failure in comparative trials, Antony said "modifications and fault rectifications of the tanks were

going on top priority basis".