The Steel Authority of India Limited (SAIL) today signed a memorandum of understanding with Bangalore-based Bharat Earth Movers Limited (BEML), for supply of crucial equipment required for the companys present operations as well as for its ongoing modernisation and expansion programme.
Bangalore, May 12 : The Steel Authority of India Limited (SAIL) today signed a memorandum of understanding with Bangalore-based Bharat Earth Movers Limited (BEML), for supply of crucial equipment required for the company's present operations as well as for its ongoing modernisation and expansion programme.
V.K. Gulhati, Director (Technical), SAIL, and M. Poongavanam, Director (Mining and Construction), BEML, signed the MoU in the presence of V.S. Natrajan, Chairman-cum-Managing Director, BEML, at Bangalore.
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.
Under the MoU, BEML, a Mini Ratna category-1 PSU under the Ministry of Defence, will supply the required equipment at a mutually agreed price for the next three 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.
ANI