October 07, 2008

SAIL inks MoU with BEML for crucial equipment supply

Steel Authority of India Limited has signed a MoU with Bangalore based Bharat Earth Movers Limited for supply of crucial equipment required for the company's present operations as well as for its ongoing modernization & expansion program.

Mr VK Gulhati director (technical) of SAIL and Mr M Poongavanam director (mining & construction) of BEML signed the MoU in the presence of Mr VS Natrajan CMD of BEML.

Under the MoU, BEML will supply the required equipment at a mutually agreed price for the next 3 years. The agreement will also enable SAIL to contain maintenance cost, as BEML will undertake maintenance of the equipment for their entire economic life with guaranteed equipment availability.

SAIL's growth plan, which envisages its hot metal production capacity rising to over 26 million tonnes by the year 2010, will call for a quantum increase in raw material requirement. This is planned to be sourced not only from the company's existing mines but also from new mining blocks. As a result, the requirement for crucial equipment like dumpers, shovels, dozers, etc, will rise substantially, both in SAIL mines and plants.