Bangalore: BEML Ltd, PSU and a leading player in earth moving and mining equipment, has entered into a memorandum of understanding with Steel Authority of India Ltd (SAIL), India’s largest steel producer, for supply of equipments and spares.
Under the MoU, SAIL would purchase 261 mining equipment over a period of next three years. The various equipments envisaged under the agreement are dumpers, dozers, motor graders, high-end hydraulic excavators and tyre handlers, a release said.
The estimated value of these equipments to be ordered in three years will be Rs 477 crore. In addition, the agreement also provides for the maintenance contract of the fleet of equipments to be supplied valued at approximately Rs 300 crore.
Both the PSUs have mutually agreed to work on an 11-year term during which, BEML shall supply equipments till 2011 to SAIL as well as undertaking Maintenance and Repair Contract for the next eight years.
BEML has also signed a long term agreement for 12 years with Coal India Ltd for joint production of “Off the Road” (OTR) tyres to meet the requirement for production by BEML and after sale requirement by Coal India Ltd.
Recently, BEML has also entered into a MoU with National Aluminum Company (NALCO) to collaborate for the production of aluminum wagons for the movement of ore for NALCO.