Govt approves Miniratna-I status to Yantra India Limited

• Defence Minister Rajnath Singh has approved the grant of ‘Miniratna’ Category-I status to Yantra India Limited (YIL).

• It is in line with the broader defence reforms which aim to reduce import dependence, promote domestic defence production, encourage participation of Indian industry and position India as a global defence manufacturing hub, they said.

• It lays a strong focus on building indigenous capabilities in defence manufacturing, research and strategic technologies.

Yantra India Ltd

• The government had corporatised the erstwhile Ordnance Factory Board (OFB) into seven DPSUs on October 1, 2021, with a view to enhancing functional autonomy, efficiency and promoting innovation and growth in the defence manufacturing sector.

The seven defence PSUs are:

i) Munition India Ltd

ii) Armoured Vehicles Nigam Ltd

iii) Advanced Weapons and Equipment India Ltd

iv) Troop Comforts Ltd

v) Yantra India Ltd

vi) India Optel Ltd

vii) Gliders India Ltd.

• In May 2025, the defence minister had approved the grant of Miniratna-I Status to three of the seven DPSUs — Munitions India Limited, Armoured Vehicles Nigam Limited and India Optel Limited.

• Yantra India Limited (YIL), a fully owned government of India enterprise, under Department of Defence Production, Ministry of Defence has been incorporated under Companies Act 2013.

• It is operational from October 1, 2021. 

• YIL is engaged in production of ammunition hardware and ordnance components. 

• YIL is a conglomerate of eight production units, training institute, and marketing centre. 

• The production units are located in West Bengal (2), Uttar Pradesh (1), Madhya Pradesh (2), Maharashtra (3).

• The major products of YIL include carbon fibre composites, assembly products for medium and large calibre ammunition, assembly products for armoured vehicles, assembly products for artillery guns and main battle tanks (MBTs), glass composites and aluminium alloys.

• The YIL has achieved significant milestones after its inception, including stellar growth in sales from Rs 956.32 crore in 2021-22 (H2) to Rs 3,108.79 crore in FY 2024-25. 

• On the export front, it recorded Rs 321.77 crore in FY 2024-25.

What is Maharatna, Navratna and Miniratna status?

• Under Articles of Association, the board of directors of Central Public Sector Enterprises (CPSEs) enjoys autonomy in respect of recruitment, promotion and other service conditions of below board level employees. 

• The board of directors of a CPSE exercises delegated powers subject to broad policy guidelines issued by the government from time to time. 

• The government has granted enhanced powers to the Boards of the profit-making enterprises under various schemes like Maharatna, Navratna and Miniratna.

Maharatna scheme

• The main objective of the Maharatna scheme which was introduced in 2010 is to empower mega CPSEs to expand their operations and emerge as global giants.

• Maharatna CPSEs compared to others are given greater autonomy for flexibility in respect of capital expenditure, formation of strategic alliance, formulation of HR policies, etc.

• The Board of a Maharatna CPSE can make equity investments to undertake financial joint ventures and wholly-owned subsidiaries and undertake mergers and acquisitions in India and abroad, subject to a ceiling of 15 per cent of the net worth of the concerned CPSE, limited to Rs 5,000 crore in one project.

• The board can also structure and implement schemes relating to personnel and human resource management and training. They can also enter into technology joint ventures or other strategic alliances.

Eligibility criteria for grant of Maharatna status

The CPSEs meeting the following eligibility criteria are considered for Maharatna status:

a) Having Navratna status.

b) Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations.

c) An average annual turnover of more than Rs 25,000 crore during the last three years.

d) An average annual net worth of more than Rs 15,000 crore during the last three years.

e) An average annual net profit after tax of more than Rs 5,000 crore during the last three years.

f) Should have significant global presence/international operations.

Navratna scheme

The government introduced the Navratna scheme in 1997.

Under this scheme, the Boards of Navratna CPSEs have been delegated enhanced powers in the areas of:

i) Capital expenditure

ii) Investment in joint ventures/subsidiaries

iii) Mergers & acquisitions

iv) Human resources management, etc.

Eligibility criteria for grant of Navratna status

The CPSEs which are Miniratna I, Schedule ‘A’ and have obtained ‘excellent’ or ‘very good’ MOU rating in three of the last five years and have a ‘Composite Score’ of performance to be 60 or above in six identified performance parameters are eligible to be considered for grant of Navratna status. 

The parameters are:

1) Net Profit to Net worth

2) Manpower Cost to total Cost of Production or Cost of Services

3) Profit Before Depreciation, Interest and Tax (PBDIT) to Capital Employed 

4) Profit Before Interest and Tax (PBIT) to Turnover

5) Earning Per Share

6) Inter-Sectoral Performance.

Miniratna scheme

• In October 1997, the government decided to grant enhanced autonomy and delegation of financial powers to some other profit making companies subject to certain eligibility conditions and guidelines to make them efficient and competitive.

• These companies, called Miniratnas, are in two categories, namely, Category-I and Category-II.

• Category-I CPSEs should have made profit in the last three years continuously, the pre-tax profit should have been Rs 30 crore or more in at least one of the three years and should have a positive net worth.

• Category-II CPSEs should have made profit for the last three years continuously and should have a positive net worth.

• The Miniratna (Category-I) status empowers the Board to incur capital expenditure on new projects, modernisation, purchase of equipment, etc, without government approval up to Rs 500 crore or equal to net worth, whichever is less. 

• The Miniratna (Category-II) status empowers the Board to incur capital expenditure on new projects, modernisation, purchase of equipment, etc, without government approval up to Rs 250 crore or equal to net worth, whichever is less.

(The author is a trainer for Civil Services aspirants.)