The 54th Infantry Division was raised at Secunderabad on 1 October 1966. Major General SS Maitra, AVSM was the first General Officer Commanding the Division. At the time of its raising, the division had three Infantry Brigades and one Artillery Brigades. 47 Infantry Brigade was raised by Brigadier B D Man Singh at Golconda Fort, 91 Infantry Brigade by Brigadier K P Lahiri, VrC at Bolarum and the 54 Artillery Brigade was raised by Brigadier N V Subramaniam at Bowenpally.
In the event of a war, the 54th Infantry Division was to be part of I Corps, then the only Strike Corps of the Indian Army. The division was commanded by Major General WAG Pinto, the 3rd General Officer Commanding. The division moved from its peacetime location in Secunderabad to its operational location in the Punjab and was ready by mid-September 1971. The tasks allotted to the Division were:
Carry out offensive operations based upon Galar with the ultimate aim of capturing Zafarwal and Dhamtal.
While doing so, capture Darman, Bari, Laisar Kalan, Supwal Ditch and Badwal. Be prepared to capture Deoli and Mirzapur, if required. This meant that the Division was to operate between the Degh Nadi and the Karir Nadi.
The Pakistani forces opposite the Division consisted of elements of the 8th Infantry Division. The 24 Infantry Brigade with four battalions, a brigade in Zafarwal area and Reconnaissance elements of 21 Baloch. Apart from these infantry units, Pakistani armour consisted of the 8 Armoured Brigade which had 13th Lancers, 31 Cavalry and 27 Cavalry under it, equipped with M47 Patton and M48 Patton tanks. The Division crossed the border as planned at 2000 hrs on 6 December and captured the border outposts at Chamnakhurd, Danadout, Galar Tanda, Chak Jangu, Dhandhar, Mukhwal and Buru Chakby 0230 hrs 7 December.
The Battle of Basantar was among the most vital battles in the war. It was one of the greatest tank battles fought by the Indian Army. The Division had the 47 Infantry Brigade, 91 Infantry Brigade and the 74 Infantry Brigade, Poona Horse and one squadron of Hodson's Horse. The date for the Basantar crossing was fixed for night 14/15 December, but was postponed by 24 hours by Gen Pinto. The Battle of Basantar was a decisive Indian victory. The 47 Infantry Brigade was christened Basantar Brigade after the war. In what is an Indian Army record, the 54th Infantry Division won as many as 196 gallantry medals in just 14 days of fierce fighting. These include 2 Param Vir Chakras and 9 Mahavir Chakras. The GOC, Maj Gen Pinto was awarded the Param Vishisht Seva Medal. The Division remained in Pakistan until the Simla Agreement, after which it moved back to Secunderabad in March 1973. A war trophy - a disabled Pakistani M47 Patton Tank was gifted by the Division to the Government of Andhra Pradesh and had it installed on the Tank Bund Road, Hyderabad.
The Division was in Sri Lanka for over two and a half years and was de-inducted on 20 March 1990. During Operation Pawan, the Division earned 1 Param Vir Chakra, 3 Mahavir Chakras, 4 Uttam Yudh Seva Medals and 32 Vir Chakras, among others.