Ministry of Defence has conferred Miniratna (Category-I) status to three key Defence Public Sector Undertakings (DPSUs):
- Munitions India Limited (MIL)
- Armoured Vehicles Nigam Limited (AVNL)
- India Optel Limited (IOL)
Transformation of DPSUs
- These three entities were carved out of the erstwhile Ordnance Factory Board (OFB) in 2021, under major defence sector reforms.
- Purpose: Enhance autonomy, competitiveness, and specialised production.
- MIL:
- Manufactures small to large calibre ammunition, grenades, mortars, rockets, and explosives.
- AVNL:
- Produces Main Battle Tank (MBT) Arjun, T-90 tanks, BMP-II Sarath ICVs, and logistics vehicles like Stallion and LPTA.
- IOL:
- Specialises in opto-electronic systems, vision devices for tanks, artillery, and naval weaponry.
What is Miniratna (Category-I) Status?
- Launched: 1997, to enhance efficiency and autonomy in profit-making PSUs.
- Eligibility Criteria (as per the attached chart):
- Must have made profit for the last 3 years continuously.
- Should have pre-tax profit ≥ ₹30 crore in at least one of those years.
- Must possess positive net worth.
- Additional Conditions:
- No default in loan repayment or interest to the Government.
- Must not rely on budgetary support or Government guarantees.
Benefits of Miniratna-I Status
- Greater operational autonomy.
- Can invest up to ₹500 crore or equal to net worth (whichever is lower) without government approval.
- Enhanced ability to:
- Raise capital
- Enter joint ventures
- Make faster investment decisions
- Boosts efficiency, global competitiveness, and self-reliance in defence manufacturing.
Classification of CPSEs:
| Category | Launch Year | Key Criteria (Simplified) | Examples |
| Maharatna | 2010 | Navratna + Turnover > ₹25,000 Cr, Net Worth > ₹15,000 Cr, Global Presence | BHEL, Coal India, GAIL, ONGC |
| Navratna | 1997 | High performance on 6 financial parameters + Schedule ‘A’ status | BEL, HAL |
| Miniratna-I | 1997 | 3-year profit record + ₹30 Cr pre-tax profit + net worth positive | Now includes MIL, AVNL, IOL |
| Miniratna-II | 1997 | 3-year profit + positive net worth (no ₹30 Cr pre-tax condition) | Artificial Limbs Mfg. Corp., etc. |
The Miniratna-I status for MIL, AVNL, and IOL is a major step toward Atmanirbhar Bharat in defence production. It empowers these DPSUs with greater autonomy and agility, paving the way for technological self-reliance, export potential, and strategic independence in defence.
