New Delhi: Steel Authority of India Limited (SAIL), a Maharatna public sector enterprise, has signed a Memorandum of Understanding (MoU) with Rail India Technical and Economic Service (RITES), a Navratna CPSE, to enhance logistics and operational efficiency.
This collaboration is aimed at supporting SAIL’s extensive internal rail operations across its plants and mining locations, which play a crucial role in steel production and distribution.
Why Rail Logistics Matter to SAIL
SAIL operates a dedicated mini rail network within its plant and mine premises. This internal rail system is essential for the smooth movement of raw materials coming into the plants, transfers during the production process, and dispatch of finished steel products.
Any disruption in rail movement can directly impact productivity. Therefore, maintaining a reliable fleet of diesel locomotives—along with additional wet-leased locomotives—is critical to keeping operations running without interruption.
RITES’ Expertise in Diesel Locomotive Operations
As Indian Railways gradually shifts toward electric locomotives, expertise in diesel locomotive maintenance remains vital for industries like SAIL that depend on diesel-powered internal rail systems.
RITES brings decades of experience in diesel locomotive operations and maintenance. With access to Indian Railways’ facilities, spare parts, and a skilled workforce, RITES is well equipped to ensure the reliability and performance of SAIL’s diesel locomotive fleet.
Leasing and Maintenance for Long-Term Efficiency
Under this MoU, RITES will support SAIL through diesel locomotive leasing and comprehensive maintenance services. This arrangement allows SAIL to focus on its core business—steel manufacturing—while relying on RITES for specialized rail operations.
The partnership is expected to optimize costs, reduce downtime, and improve overall operational efficiency across SAIL’s logistics network.
Supporting Growth and Sustainability Goals
The collaboration also aligns with broader goals of future expansion and sustainability. By ensuring efficient locomotive usage and maintenance, the partnership will help SAIL meet its capacity expansion plans. At the same time, better-managed logistics and optimized operations are expected to contribute to a reduced carbon footprint, supporting environmentally responsible industrial practices.
Formal Signing and Leadership Presence
The MoU was formally 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 organizations. The agreement reflects a shared commitment to operational excellence, cost efficiency, and long-term collaboration.
A Win-Win Collaboration
Overall, this partnership allows both SAIL and RITES to leverage their strengths—SAIL’s industrial scale and RITES’ rail expertise. By working together, the two CPSEs aim to strengthen India’s industrial logistics backbone while supporting sustainable growth and improved operational performance.
