In a move aimed at enhancing logistics efficiency and operational reliability, Steel Authority of India Limited (SAIL), a Maharatna CPSE, has signed a Memorandum of Understanding (MoU) with Rail India Technical and Economic Service (RITES), a Navratna CPSE. The collaboration seeks to support diesel locomotive leasing and maintenance across SAIL’s plants and mines, ensuring seamless internal rail operations.
Strengthening SAIL’s In-Plant Rail Logistics
SAIL operates a dedicated mini rail network within its plants and mining locations to facilitate uninterrupted movement of raw materials, in-process transfers, and finished steel products. Effective upkeep of its diesel locomotive fleet—supplemented by wet-leased locomotives—is critical to sustaining daily operations and supporting capacity expansion and future growth plans.
Leveraging RITES’ Expertise in Diesel Locomotive Operations
As Indian Railways accelerates its transition toward electric locomotives, RITES continues to offer specialised expertise in diesel locomotive operations and maintenance—a capability vital for sustaining SAIL’s existing diesel fleet. With access to Indian Railways’ maintenance facilities, spare parts ecosystem, and skilled manpower, RITES is well positioned to ensure high reliability and availability of locomotives across SAIL’s network.
Focus on Efficiency, Cost Optimisation and Sustainability
The MoU enables both organisations to focus on their core competencies, while jointly working to:
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Optimise costs through structured leasing and maintenance frameworks
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Enhance operational efficiency and fleet reliability
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Reduce carbon footprint through improved asset utilisation and maintenance practices
The partnership aligns with SAIL’s broader objectives of operational excellence and sustainable industrial growth.
MoU Signing and Participants
The MoU was signed by P. K. Baisakhiya, Executive Director (Operations), SAIL, and Sandeep Jain, Executive Director (Technical Services), RITES, in the presence of senior officials from both organisations.
Conclusion
The SAIL–RITES collaboration marks a strategic step towards strengthening industrial rail logistics, ensuring dependable diesel locomotive operations during India’s broader rail electrification transition. By combining SAIL’s operational scale with RITES’ technical expertise, the partnership is expected to deliver greater efficiency, reliability, and sustainability across SAIL’s internal rail infrastructure.
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Source: PIB
