SAIL, RITES Partner to Boost Rail Logistics and Operational Efficiency

SAIL operates a dedicated mini rail network within its integrated steel plants and mining locations to ensure the smooth movement of raw materials, in-process transfers and finished steel products.

Steel Authority of India Limited (SAIL), a Maharatna Central Public Sector Enterprise (CPSE), has signed a Memorandum of Understanding (MoU) with Rail India Technical and Economic Service (RITES), a Navratna CPSE, to strengthen logistics and operational efficiency across SAIL’s plants and mines.

SAIL operates a dedicated mini rail network within its integrated steel plants and mining locations to ensure the smooth movement of raw materials, in-process transfers and finished steel products. The reliability and maintenance of its diesel locomotive fleet, supported by wet-leased locomotives, are critical to sustaining day-to-day operations as well as supporting future capacity expansion and growth.

As Indian Railways advances its transition towards electric locomotives, RITES continues to retain strong expertise in diesel locomotive operations and maintenance — a capability that remains essential for SAIL’s internal rail network. Leveraging access to Indian Railways’ facilities, spare parts ecosystem and a skilled pool of technical manpower, RITES is well-positioned to support SAIL in ensuring consistent and reliable rail operations.

The collaboration will allow both organisations to focus on their core competencies, optimise costs, improve operational efficiency and contribute towards a reduced carbon footprint through better asset utilisation and streamlined logistics.

The MoU was signed by Shri P.K. Baisakhiya, Executive Director (Operations), SAIL, and Shri Sandeep Jain, Executive Director (Technical Services), RITES, in the presence of senior officials from both organisations.

Call to action for industry stakeholders

The partnership highlights the role of strategic CPSE collaboration in strengthening India’s industrial logistics backbone. Stakeholders across the steel, rail and infrastructure sectors are encouraged to explore similar synergies to enhance efficiency, sustainability and competitiveness.