Steel Authority of India Limited (SAIL), a Maharatna central public sector enterprise, has entered into a Memorandum of Understanding (MoU) with Rail India Technical and Economic Service (RITES), a Navratna CPSE, to strengthen logistics efficiency and operational performance across SAIL’s plants and mining locations.

The MoU was signed by Shri P.K. Baisakhiya, Executive Director (Operations), SAIL, and Shri Sandeep Jain, Executive Director (Technical Services), RITES, in the presence of senior officials from both organisations.

Role of Captive Rail Infrastructure in SAIL’s Operations

SAIL operates an extensive captive rail network within its plants and mining units to facilitate the smooth movement of raw materials, inter-unit transfers and dispatch of finished steel. The reliability and upkeep of its diesel locomotive fleet, including wet-leased locomotives, play a vital role in ensuring uninterrupted daily operations. These capabilities are also essential to support capacity expansion plans and long-term growth objectives.

RITES to Offer Technical Support for Diesel Locomotives

As Indian Railways gradually shifts towards electric traction, RITES continues to maintain strong expertise in diesel locomotive operations and maintenance. This capability remains critical for industries such as SAIL that rely on captive rail systems. Leveraging access to Indian Railways’ infrastructure, spare parts and experienced manpower, RITES will support consistent performance and reliability across SAIL’s rail network.

Expected Benefits of the Collaboration

The partnership is expected to allow both organisations to focus on their core strengths while improving operational efficiency and optimising costs. Enhanced asset utilisation and more efficient logistics operations are also likely to contribute to a lower carbon footprint over time.

Summary

SAIL has signed an MoU with RITES to improve logistics efficiency and rail operations across its plants and mines. The collaboration will leverage RITES’ expertise in diesel locomotive maintenance to ensure reliable captive rail operations, support future growth and enhance overall efficiency while contributing to cost optimisation and sustainability goals.

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