New Delhi, May 12: Steel Authority of India Limited (SAIL) today said it has signed a Memorandum of Understanding (MoU) with Bangalore-based Bharat Earth Movers Limited (BEML), for supply of crucial equipments for the company's modernisation and expansion programme.
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 company said in a statement. The PSUs 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, will rise substantially, both in SAIL mines and plants.
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.