In a significant move to boost India’s defence sector and enhance self-reliance, Defence Minister Rajnath Singh has granted Miniratna Category-I status to three key Defence Public Sector Undertakings (DPSUs): Munitions India Limited (MIL), Armoured Vehicles Nigam Limited (AVNL), and India Optel Limited (IOL). This designation provides these companies with increased financial and operational autonomy, allowing them to make independent investment decisions of up to ₹500 crore or their net worth, whichever is lower.
This decision comes in recognition of the substantial progress made by these DPSUs in improving financial outcomes, ramping up indigenous production, and aligning their operations with the government’s vision of Aatmanirbhar Bharat (self-reliant India). The three companies were established following the 2021 restructuring of the Ordnance Factory Board, and their recent performance highlights a notable transformation.
Munitions India Limited has experienced staggering growth, with sales increasing over 200%, rising from ₹3,314 crore in the financial year 2021-22 to ₹8,214 crore projected for 2024-25. The company’s emphasis on producing critical ammunition has played a pivotal role in reducing reliance on imports.
Armoured Vehicles Nigam Limited has similarly excelled, reporting a 190% revenue increase, escalating from ₹2,569.26 crore to Â¥4,946 crore in the same timeframe. Noteworthy is AVNL’s achievement in fully indigenizing engines for crucial combat platforms, including the T-72 and T-90 tanks, as well as the BMP-II infantry vehicle.
Perhaps the most remarkable growth has been seen at India Optel Limited, which has surged by over 250%, with sales jumping from ₹562.12 crore in FY 2021-22 to ₹1,541.38 crore for FY 2024-25. IOL specializes in advanced opto-electronic systems critical for modern warfare capabilities.
Defence Minister Rajnath Singh commended the leadership of these DPSUs for their dedication to innovation, efficiency, and national security. He emphasized their essential contributions to India’s defence ecosystem and the need to cultivate a robust, export-capable domestic industry.
This initiative aligns with a broader governmental strategy to promote indigenisation within the defence domain, bolstered by initiatives such as the Defence Production and Export Promotion Policy, the Defence Acquisition Procedure, and the Make in India initiative—all aimed at diminishing dependence on foreign imports.
The Indian Navy is also on a strategic path towards achieving full self-reliance by 2047, focusing on advanced technologies such as ship propulsion, aero-engines, artificial intelligence, quantum computing, and hypersonic weapons.
By conferring Miniratna status, the government is providing MIL, AVNL, and IOL with the autonomy and flexibility necessary to spur innovation, expand export opportunities, and enhance India’s defence manufacturing capabilities. The accomplishments of these DPSUs are expected to inspire other public sector units to contribute actively to India’s quest for strategic independence.
