The CVRDE has been looking to scale up the manufacturing capacity of Arjun tanks to meet the Army’s requirements. Private sector players were hence considered as an alternative supply line in addition to the Ordnance Factory Board, which has so far been the sole supplier of indigenous components for the MBTs.
For me this is the crux of Arjun's problems. Forget weight, capability, local etc.. it is OFB. Forget IA, even I would think 10 times about a important defence kit, whose sole supplier is... OFB. You can worry about weight, once you get the tank. With OFB.. you are not even guaranteed to recieve on time.
People may have forgotten about the horrible QC issues which plagued the first batch of Arjun.