Rajnath Singh Grants Miniratna Status to Three Defence PSUs, Boosting India’s Defence Sector
New Delhi, May 29, 2025: In a significant move to bolster India’s defence manufacturing, Defence Minister Rajnath Singh has approved Miniratna Category-I status for three Defence Public Sector Undertakings (DPSUs): Munitions India Limited (MIL), Armoured Vehicles Nigam Limited (AVNL), and India Optel Limited (IOL). This recognition highlights their transformation from government entities to profit-driven corporations within just three years.
Congratulating the DPSUs, Singh praised their management for driving remarkable growth, enhancing indigenisation, and meeting stringent performance criteria for Miniratna status. The status grants greater autonomy, enabling these companies to pursue ambitious growth and innovation in defence production and exports.
Munitions India Limited (MIL) has recorded a stellar rise in sales, from ₹2,571.6 crore in 2021-22 (H2) to a provisional ₹8,282 crore in FY 2024-25. Its export performance is equally impressive, soaring from ₹22.55 crore to ₹3,081 crore in the same period. MIL produces a wide range of products, including small, medium, and high-calibre ammunition, mortars, rockets, and hand grenades, with in-house manufacturing of initiatory compositions, propellants, and high explosives.
Armoured Vehicles Nigam Limited (AVNL) has seen its sales grow from ₹2,569.26 crore in 2021-22 (H2) to a provisional ₹4,986 crore in FY 2024-25. AVNL achieved 100% indigenisation of engines for T-72, T-90, and BMP-II platforms. Its portfolio includes armoured vehicles like T-90, MBT Arjun, and BMP-II Sarath, alongside support vehicles and defence mobility solutions such as Stallion and LPTA.
India Optel Limited (IOL) has boosted its sales from ₹562.12 crore in 2021-22 (H2) to a provisional ₹1,541.38 crore in FY 2024-25. IOL specialises in opto-electronic systems and vision equipment for platforms like T-90 and T-72 tanks, BMP-II vehicles, artillery, and naval guns.
The Miniratna status is expected to propel MIL, AVNL, and IOL toward accelerated growth and global competitiveness. These DPSUs were formed on October 1, 2021, following the restructuring of the Ordnance Factory Board into seven DPSUs to enhance efficiency and innovation. MIL and AVNL are classified as Schedule ‘A’ DPSUs, while IOL is a Schedule ‘B’ DPSU under the Department of Defence Production.
