p2prada
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For the Arjun, the transmission was modified as far as I know. It is the same as what was on it in the 90s. Engine as well. The Germans don't want to hand over licence for manufacture in India because our current orders are too small. Economics.Yes that could have been possible and should have been done. Other elements of the tank were replaced during development like the transmission and the engine.
It seems while the Arjun will be refined further with the Mk2 and Mk3 models, the Army may have already decided on a new tank. That's why CVRDE was talking about making a new 2000HP engine for the new tank. The power will be governed to 1500HP if things go according to plan. But if weight of the tank increases during development, they will be able to increase the governed power. So, there is room for error.
I think there is a JV plan for a 1500HP engine for Arjun at the same time. Some said it will be Cummins.