Defence Minister Rajnath Singh has approved the grant of “Miniratna” status Category-I for Munitions India Limited (MIL), Armoured Vehicles Nigam Limited (AVNL) & India Optel Limited (IOL), the Ministry of Defence said in a statement on Thursday.
The move comes amid the Centre’s larger effort to push indigenous defence manufacturing and enhance the autonomy and competitiveness of state-run defence firms. All three companies were carved out of the erstwhile Ordnance Factory Board (OFB) in October 2021 as part of a structural overhaul of the sector.
Singh commended the firms for significantly increasing turnover and indigenisation levels. He termed their evolution from government departments into revenue-generating enterprises as a sign of “mature and self-reliant defence manufacturing”.
Steady Revenue Growth and Export Gains
Munitions India Limited, which manufactures a range of ammunition including small, medium and high-calibre rounds, grenades, mortars and rockets, has seen its provisional revenue rise to ₹8,282 crore in FY 2024–25, up from ₹2,571.6 crore in 2021–22 (second half). Export figures have also surged from ₹22.55 crore to ₹3,081 crore in the same period.
Similarly, Armoured Vehicles Nigam Limited, which produces main battle tanks, infantry combat vehicles, and defence logistics platforms, has recorded a provisional revenue of ₹4,986 crore in FY 2024–25, from ₹2,569.26 crore in 2021–22 (H2). Notably, the company has indigenised engines across all three key combat vehicle platforms — T-72, T-90, and BMP-II.
India Optel Limited, which focuses on opto-electronic and vision systems for land and naval platforms, has also more than doubled its revenue, from ₹562.12 crore in FY 2021–22 (H2) to a provisional ₹1,541.38 crore in FY 2024–25.
Strategic Autonomy and Expansion
The Miniratna status allows these DPSUs greater operational autonomy, including powers to make capital investments up to ₹500 crore or equal to their net worth, without prior government approval. It also enables them to enter joint ventures and forge technology partnerships more independently.
While MIL and AVNL are classified as Schedule ‘A’ companies, IOL is a Schedule ‘B’ firm. All three are under the administrative control of the Department of Defence Production (DDP).
The Defence Ministry said the decision is aimed at accelerating growth in domestic production, boosting exports, and fostering innovation through increased functional autonomy.