Rajnath Singh Grants Miniratna Status to AVNL and Others

Defence Minister Rajnath Singh has approved 'Miniratna' status for Armoured Vehicles Nigam Limited (AVNL) and two other DPSUs, Munitions India Limited (MIL) and India Optel Limited (IOL). These companies have shown significant growth, transitioning from government entities to profit-making corporate bodies, enhancing defence production and exports.

In a move aimed at propelling India's defence sector, Defence Minister Rajnath Singh has conferred 'Miniratna' status upon Armoured Vehicles Nigam Limited (AVNL), Munitions India Limited (MIL), and India Optel Limited (IOL). This decision signifies the government's recognition of these entities' successful transformation from traditional government-run organizations to thriving corporate units.

AVNL, known for its production of armoured and combat vehicles, and MIL, a leader in ammunition manufacturing, have reported substantial increases in sales, demonstrating the impact of their strategic shift towards increased indigenization and efficiency. MIL's sales skyrocketed from Rs 2,571.6 crore in FY 2021-22 to a provisional Rs 8,282 crore in FY 2024-25, while AVNL achieved a sales boost from Rs 2,569.26 crore to Rs 4,986 crore in the same period.

The IOL is also making strides with its opto-electronic systems and vision equipment. The elevation to 'Miniratna' status is expected to further empower these DPSUs, driving innovation, expanding their autonomous capabilities, and augmenting defence production and export initiatives. The transformation of the erstwhile Ordnance Factory Board into seven DPSUs, effective since October 2021, reflects a broader strategy to enhance functional autonomy and growth potential within the defence sector.

(With inputs from agencies.)