Did Rajnath Singh Approve Miniratna Status for 3 Defence PSUs?
Click to start listening
Synopsis
In a significant move for India's defence sector, Rajnath Singh bestows ‘Miniratna’ status on three key PSUs, paving the way for enhanced growth and indigenisation. Discover the remarkable transformations of MIL, AVNL, and IOL in this detailed analysis.
Key Takeaways
- Munitions India Limited (MIL) has seen over 200% growth in sales.
- Armoured Vehicles Nigam Limited (AVNL) achieved 190% sales growth.
- India Optel Limited (IOL) reported over 250% increase in sales.
- The Miniratna status enhances operational autonomy for these firms.
- The companies are crucial for India's defence self-reliance.
New Delhi, May 29 (NationPress) Defence Minister Rajnath Singh has officially sanctioned the conferral of ‘Miniratna’ Category-I status for Munitions India Limited (MIL), Armoured Vehicles Nigam Limited (AVNL), and India Optel Limited (IOL), as stated in an official announcement on Thursday.
Celebrating the remarkable transformation of these three defence public sector undertakings from government bodies to profitable corporate entities within just three years, the minister expressed his approval of the efforts made by the management of MIL, AVNL, and IOL to boost their revenues, enhance indigenisation, and satisfy other performance criteria necessary for receiving Miniratna status.
Munitions India Limited has hit significant targets since its founding, achieving an impressive sales increase of over 200% from Rs 3,314 crore in 2021-22 to Rs 8,214 crore in FY 2024-25. On the export side, it has escalated from Rs 22.55 crore in FY 2021-22 to Rs 3,081 crore in FY 2024-25. Key products of MIL include small, medium, and high calibre ammunition, mortars, rockets, hand grenades, etc., with in-house production of initiatory compositions, propellants, and high explosives.
Armoured Vehicles Nigam Limited has seen a notable rise of about 190% in sales from Rs 2,569.26 crore in 2021-22 to Rs 4,946 crore in FY 2024-25. AVNL has also achieved 100% indigenisation of engines for its three platforms—the T-72 and T-90 tanks and BMP-II. The primary products of AVNL encompass tanks, infantry combat vehicles, support vehicles (MPV, AERV, etc.), and defence mobility solutions (Stallion, LPTA, etc).
India Optel Limited has expanded its sales from Rs 562.12 crore in 2021-22 to Rs 1,541.38 crore in FY 2024-25, marking a growth of over 250%. Its main products include opto-electronic systems and vision equipment, utilized in land platforms and weaponry such as T-90 and T-72 tanks, BMP-II infantry combat vehicles, and artillery/naval guns.
The granting of Miniratna status to MIL, AVNL, and IOL is anticipated to further empower these companies to achieve accelerated growth and success in defence production and exports, as per the official statement.
To enhance their operational autonomy, efficiency, and unleash new avenues for growth and innovation, the former Ordnance Factory Board (OFB) was restructured into seven defence public sector undertakings (DPSUs), including these three firms, starting October 1, 2021. While MIL and AVNL are classified as Schedule ‘A’ new DPSUs, IOL falls under Schedule ‘B’ DPSU, operating under the Department of Defence Production.
Point of View
The recent approval of ‘Miniratna’ status to three defence PSUs reflects a pivotal shift in India's defence landscape. This recognition not only boosts the companies' operational autonomy but also reinforces the government's commitment to indigenisation and self-reliance in defence production. As these firms continue to thrive, they contribute significantly to national security and economic growth.
NationPress
21/07/2025
Frequently Asked Questions
What is Miniratna status?
Miniratna status is a designation given by the Government of India to certain public sector undertakings (PSUs) that meet specific criteria, allowing them greater operational autonomy and financial flexibility.
Which companies received Miniratna status?
The companies that received Miniratna status are Munitions India Limited (MIL), Armoured Vehicles Nigam Limited (AVNL), and India Optel Limited (IOL).
What does this status mean for these companies?
The Miniratna status empowers these companies to make independent decisions on investments, enhance their operational efficiency, and boost their growth in the defence sector.
Why is this significant for India's defence sector?
Granting Miniratna status is significant as it enhances the companies' capacity to innovate, produce, and export defence equipment, contributing to India's self-reliance in defence.
Who oversees these PSUs?
The Munitions India Limited and Armoured Vehicles Nigam Limited are categorized as Schedule ‘A’ DPSUs, while India Optel Limited is classified as a Schedule ‘B’ DPSU under the Department of Defence Production.
