Virat Kohli and Ajinkya Rahane orchestrated one of the great MCG partnerships as Australian frustrations mounted in the Boxing Day Test, before the old stager Ryan Harris barged into India's suspect lower order.

The stand of 262 between Kohli, India's captain-in-waiting, and Rahane, his audacious middle-order accomplice, wrested the momentum away from the home team for a tick under four hours. But India need to win in Melbourne to keep the battle for the Border-Gavaskar Trophy alive, and their cause was again undermined by the lack of sting in their tail.

Harris' heroics — 4-69 on a slow drop-in pitch that offered little assistance to the bowlers — meant Australia still held a narrow lead of 68 at stumps on day three.

Kohli fell for 169 to the last ball of the day from Mitchell Johnson, when Brad Haddin flung himself sideways to take a second blinding catch for the day. India were 8-462.

While brilliant centuries from Steve Smith, Kohli and Rahane have defined the match so far, the all-round contribution of 35-year-old Harris could prove decisive.

He made a belligerent 74 with the bat and punched a hole in India's lower order when he had captain M.S. Dhoni caught behind for a scratchy 11 and then hugged to his chest a juggled catch off his own bowling to remove Ravi Ashwin for a duck.

His effort was all the more impressive in light of the way India's batsmen dominated Johnson, who conceded 133 runs before his only wicket.

"It's a pretty flat wicket. Mitch was doing what he does best which is try to be aggressive and bowl bouncers, and they batted pretty well," Harris said.

The partnership between Kohli and Rahane was the biggest for the fourth wicket in the history of MCG Tests, built on bravado and skill. In posting his third century for the series, Kohli again showed he would not be intimidated, remonstrating with Johnson after the fast bowler hurled a ball at him during the heated middle session as Australian frustrations mounted. He is a new-age cricketer in every way, blowing a kiss to his girlfriend when he reached his century.

As tempers frayed, so did the Australian fielding. The simplest of caught-and-bowled chances slipped through Nathan Lyon's fingers with Rahane on 70, and Shane Watson grassed one in the slips that Haddin might have gone for when Kohli was on 88.

In the first two Tests Rahane looked as if he could get out at any moment but at times during his career-high 147 in Melbourne he appeared almost invincible. The 26-year-old's first 30 came at less than a run a ball and he played the short-pitched bowling beautifully, leaning back to uppercut Harris over the slips and taking Johnson for 15 in an over including an emphatic pull shot for four.

Rahane now has centuries in New Zealand, England and Australia, and a 96 in South Africa.

"They have played well the whole series. Their intent has been really good, they have come out and scored runs at good rates. If people are saying Test cricket is not that exciting they should be watching this series," Harris said.

The dismissal of Rahane, lbw as he attempted to sweep Lyon, slowed India's progress. Debutant K.L. Rahul appeared overawed either by the occasion or the audacity of the strokeplay that preceded him. He was no sooner dropped by sub fielder Peter Siddle than he tried to slog Lyon from outside off-stump and was caught at backward square leg for three.

India's propensity to lose wickets in clumps continued. This time they lost 5-53 and will have two tailenders at the crease in the morning, but Harris said the Australians were wary of their potential to chase on an MCG pitch that doesn't break up as much as other wickets around the country.

"We're two-nil up, so we always try to play to win. I'm not saying we're not going to do that, but we'll see what happens. First we have to get these wickets in the morning, that's not a given. We'll sit down after that and see where we're at tomorrow night."

The tourists resumed at 1-108 on day three but Cheteshwar Pujara and Murali Vijay both fell to loose strokes in the morning session.

Pujara succumbed to the second ball of the day from Harris, when Haddin dived full stretch to his right to snaffle the edge and his 250th Test dismissal.

Vijay fell to Shane Watson's nagging off-stump line for 55, edging to first slip.