SAIL and RITES sign MoU for diesel locomotive leasing and maintenance
Both organisations can concentrate on their core strengths, lower operating expenses, improve efficiency, and help lessen their carbon impact.
The Steel Authority of India (SAIL), a Maharatna CPSE, signed a Memorandum of Understanding (MoU) today with RITES, a Navratna CPSE. The agreement aims to optimise the rail logistics and locomotive maintenance across SAIL’s extensive network of steel plants and mines.
The MoU was signed by P.K. Baisakhiya, Executive Director (Operations) of SAIL, and Sandeep Jain, Executive Director (Technical Services) of RITES.
SAIL operates a massive mini rail network within its plant and mine premises, a critical artery for the seamless movement of inbound raw materials, in-process inventory, and outbound finished steel products. With the steel company eyeing capacity expansion, the reliability of this internal railway system is paramount.
By collaborating, both organisations can concentrate on their core strengths, lower operating expenses, improve efficiency, and help lessen their carbon impact.
The partnership leverages the complementary strengths of both public sector enterprises. As Indian Railways accelerates its transition to a fully electric fleet, RITES has retained and refined deep expertise in diesel locomotive operations and maintenance. This expertise is important for SAIL, which continues to rely heavily on a fleet of owned and wet-leased diesel locomotives.