Follow Us;Resize=(820,462) "Rajnath Singh")
Defence Minister Rajnath Singh gave approval of Miniratna “Category I” status to three defence public sector undertakings -- Munitions India Limited (MIL), Armoured Vehicles Nigam Limited (AVNL), and India Optel Limited (IOL).
New Delhi: Defence Minister Rajnath Singh gave approval of Miniratna “Category I” status to three defence public sector undertakings -- Munitions India Limited (MIL), Armoured Vehicles Nigam Limited (AVNL), and India Optel Limited (IOL).
Within three years, these organisations transformed themselves to profitable corporate entities.
Let’s know about the Miniratna status granted to the companies:--
Related Articles
Initiated in 1997, the miniratna scheme has been designed to give enhanced autonomy and delegation of powers to profit-making public sector enterprises. Prior to implementation of the Miniratna scheme, the Central Public Sector Enterprises (CPSEs) had to face numerous challenges, including bureaucratic procedures, delays in decision-making, and lack of accountability which ultimately used to hinder the growth and competitiveness in the market.
The scheme has two Categories -- Category-I-I and 12 Category-II)
Miniratna Category-I status: –Under this category, those CPSEs who have made a profit in the last three years continuously, pre-tax profit stands at Rs 30 crore or more in at least one of the three years and have a positive net worth are eligible to be considered for grant of Miniratna-I status.
Miniratna Category-II status: – The CPSEs which have made profit for the last three years continuously and have a positive net worth are eligible to be considered for grant of Miniratna-II status.
Besides, the Miniratna CPSEs should not have defaulted in the repayment of loans/interest on any loans due to the government and also not dependent upon budgetary support or the government guarantees.
Munitions India Limited
Since its inception, MIL has achieved remarkable milestones and registered extraordinary sales growth from Rs 2,571.6 crore in the second half of 2021-22 to Rs 8,282 crore (provisional) in the financial year 2024-25.
Its export business increased from Rs 22.55 crore in the second half of FY 2021-22 to Rs 3,081 crore in FY 2024-25 (provisional).
It must be noted that MIL makes small, medium, and high-calibre ammunition, mortars, rockets, and hand grenades, with in-house production of initiatory compositions, propellants, and high explosives.
AVNL
Armoured Vehicles Nigam Limited witnessed significant growth in the same period, with sales surging from Rs 2,569.26 crore in the second half of 2021-22 to ₹4,986 crore (provisional) in FY 2024-25.
AVNL has accomplished 100 percent indigenization of engines across all three platforms -- T-72, T-90, and BMP-II.
The company produces armoured and combat vehicles including T-90, MBT Arjun, and infantry combat vehicle BMP-II Sarath, alongside support vehicles, and defence mobility solutions, such as Stallion and LPTA systems.
India Optel Limited
India Optel Limited sales hiked over three years, growing from Rs 562.12 crore in the second half of 2021-22 to Rs 1,541.38 crore (provisional) in FY 2024-25.
IOL specializes in opto-electronic systems and vision equipment used in land system platforms and weapons, including battle tanks T-90 and T-72, infantry combat vehicle BMP-II, artillery guns, and naval guns.
The Miniratna status will further empower these companies to achieve accelerated growth and reach new heights in defence production and exports.
This recognition comes as part of a broader strategic transformation that saw the erstwhile Ordnance Factory Board converted into seven DPSUs on October 1, 2021, to enhance functional autonomy, efficiency, and unleash growth potential and innovation.
