New Delhi: RITES Limited, a Navratna public sector enterprise and a leading transport infrastructure consultancy, has signed a strategic Memorandum of Understanding (MoU) with the Steel Authority of India Limited (SAIL) to strengthen locomotive leasing, maintenance, and rail logistics across SAIL’s nationwide operations.
The agreement aims to improve the efficiency and reliability of rail-based material movement at SAIL’s steel plants and mining locations, a critical component of the company’s integrated supply chain.
Key Features of the Agreement
Under the MoU, RITES will provide a comprehensive suite of railway services tailored to SAIL’s operational requirements. These include:
- Wet Leasing of Locomotives: RITES will supply locomotives along with full operations and maintenance (O&M) support, ensuring seamless day-to-day functioning.
- Advanced Maintenance Services: The agreement covers higher-schedule maintenance of SAIL’s existing diesel-electric locomotive fleet, helping reduce downtime and enhance performance.
- Operational Efficiency: By outsourcing locomotive management to RITES, SAIL can focus on its core objective of expanding steel production capacity while maintaining efficient logistics.
Strengthening a Longstanding Partnership
RITES and SAIL share a collaboration history spanning more than two decades, particularly in supporting SAIL’s internal railway networks. The new MoU formalizes and expands this relationship, reflecting growing logistical demands as SAIL scales up production to meet national infrastructure and industrial requirements.
Officials present at the signing ceremony stated that the partnership will enhance the efficiency, safety, and reliability of SAIL’s in-house railway systems, ensuring smoother movement of raw materials and finished products from mines to markets.
About the Companies
RITES Limited is a Navratna public sector enterprise with over 50 years of experience in transport infrastructure and engineering consultancy. The company has executed projects in more than 55 countries and is recognized globally for its expertise in railways and logistics.
Steel Authority of India Limited (SAIL), operating under the Ministry of Steel, is one of India’s largest steel producers and a key contributor to the country’s industrial and infrastructure development.
The MoU marks an important step toward modernizing industrial rail logistics and underscores the growing role of professional railway service providers in supporting large-scale manufacturing operations.