Steel Authority of India Limited (SAIL), a Maharatna Central Public Sector Enterprise, has signed a Memorandum of Understanding (MoU) with Rail India Technical and Economic Service (RITES), a Navratna CPSE, to strengthen logistics support and operational efficiency across SAIL’s plants and mining locations.
MoU establishes a collaborative framework for diesel locomotive leasing and maintenance services, which are critical to SAIL’s internal rail operations. SAIL operates a dedicated mini rail network within its plant and mine premises to facilitate uninterrupted movement of raw materials, intra-plant transfers, and dispatch of finished steel products. Reliable availability and efficient maintenance of diesel locomotives, including wet-leased units, are essential to support ongoing operations as well as future capacity expansion.
With Indian Railways progressively transitioning towards electric traction, RITES continues to play a vital role in sustaining diesel locomotive operations. Leveraging its access to Indian Railways’ maintenance facilities, spare parts ecosystem, and skilled technical workforce, RITES is well positioned to provide specialised support for the upkeep and operational reliability of SAIL’s diesel locomotive fleet.
Partnership is expected to enable both organisations to focus on their core competencies while optimising costs, improving asset utilisation, and enhancing overall operational efficiency. The collaboration also supports broader sustainability objectives by contributing to reduced fuel consumption, improved maintenance practices, and a lower carbon footprint.
MoU was signed by senior executives from SAIL and RITES in the presence of officials from both organisations, marking a significant step towards strengthening industrial logistics infrastructure and supporting India’s growing steel sector.
