BEML gets Rs 7,770-mn SAIL contract

Bangalore: BEML said it has entered into an MoU with Steel Authority of India for supply and maintenance of heavy earth moving equipment and spares. The three-year sales and eight-year maintenance contracts are together worth Rs 777 crore, BEML said in a release here.

SAIL plans to buy from BEML 261 mining equipment such as dumpers, dozers, motor graders, high-end hydraulic excavators and tyre handlers all worth Rs 477 crore – until 2011. The maintenance contract which will run for the next eight years amounts to Rs 300 crore. BEML will also train the SAIL staff in maintenance.

Mr V.K Gulhati, Director (Technical), SAIL, and Mr M.Poongavanam, Director (Mining & Construction), signed the memorandum in the presence of BEML’s CEO, Mr V.R.S. Natarajan.

In another long-term agreement, BEML said it has roped in Coal India Ltd into its arrangement with two domestic tyre majors to make OTR (off the road) tyres. These rugged tyres are for the heavy duty vehicles that BEML makes for mining major Coal India. As per the 12-year agreement, CIL will contribute Rs 100 crore each to help Apollo Tyres and JK Tyres set up exclusive OTR facilities. The amount will be routed through BEML.

Recently the defence PSU tied up with National Aluminium Company to source aluminium and make wagons to transport bauxite ore from NALCO’s mines to its plants.