India Optel Limited (IOL), a key player in the indigenous production of electro-optical and vision systems, has been granted Category-I ‘Miniratna’ status by the Ministry of Defence. Defence Minister Rajnath Singh approved the decision, which also includes Munitions India Limited (MIL) and Armoured Vehicles Nigam Limited (AVNL), marking a significant step towards increasing operational autonomy for India’s newly restructured defence sector.

The announcement reflects the government’s broader push to strengthen the country’s defence manufacturing ecosystem by empowering public sector undertakings with greater decision-making capabilities. These three companies were formed in October 2021 following the dismantling of the Ordnance Factory Board (OFB), as part of an ambitious reform to modernise and commercialise India’s defence production.

Highlighting their rapid progress, Singh praised the enterprises for delivering consistent revenue growth and enhancing indigenous content in their manufacturing. He described their transformation from traditional government entities into self-sustaining firms as a key milestone in achieving defence self-reliance.

India Optel’s Rise

India Optel Limited, the only one among the three specialising in high-end opto-electronic systems for military platforms, has more than doubled its revenue over the past three years. From ₹562.12 crore in the latter half of FY 2021–22, its provisional earnings reached ₹1,541.38 crore in FY 2024–25. Its products play a critical role in enhancing the situational awareness and targeting capabilities of both land and naval forces.

MIL and AVNL have also reported significant financial gains. MIL, which produces a wide range of ammunition including rockets and grenades, posted provisional revenues of ₹8,282 crore in FY 2024–25, with exports jumping dramatically to ₹3,081 crore. AVNL, a manufacturer of armoured combat vehicles like the T-72, T-90 and BMP-II, has reached a turnover of ₹4,986 crore.

New Powers Under Miniratna Status
The Miniratna-I classification grants these firms greater financial and strategic independence. They can now undertake capital expenditures of up to ₹500 crore—or their net worth—without prior government approval and enter joint ventures or technical collaborations more freely.

While MIL and AVNL fall under Schedule ‘A’, India Optel is a Schedule ‘B’ company. All three continue to operate under the Department of Defence Production.

According to the Defence Ministry, the recognition aims to promote agility, foster innovation, and strengthen India's position as a defence exporter in a rapidly evolving global landscape.

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