Defwenvce ministry undertaking Bharat Earth Movers Ltd (BEML), a major manufacturer of earth moving and mining equipment, has entered into a memorandum of understanding to supply earth moving equipment and spares to India's largest steel maker, Steel Authority of India Limited (SAIL). The MoU was signed by V.K Gulhati, director (technical), SAIL and M Poongavanam, director (mining and construction) in the presence of CMD, BEML V R S Natarajan.
Under ther agreement, SAIL will buy 261 dumpers, dozers, motor graders, high end hydraulic excavators and tyre handlers, estimated wrth Rs477 crores. In addition, the agreement also provides for the maintenance contract of the fleet atan approximate value of Rs300 crore.
Both the PSUs have mutually agreed to work on a 11-year term during which, BEML will supply equipments up to 2011 to SAIL as well as undertake maintenance and repair contracts for the next eight years.
In an unrelated development, BEML has also signed a long-term agreement for 12 years with Coal India Limited for joint production of ''off road''(OTR) tyres to meet the requirement for production by BEML and after sale requirement by Coal India Ltd.
These OTR tyres will be produced by Apollo Tyres and J K Tyres in an exclusive facility being created with funding from Coal India nad BEML.
Coal India has agreed to fund BEML up to Rs200 crore for investing Rs100 crore each in Apollo and JK Tyres, as part of a back to back funding for the tyre project.
Recently BEML had entered into a MoU with National Aluminum Company (NALCO) to make aluminum wagons for the movement of bauxite from NALCO's mines to its plants with the aluminum supplied by the aluminium maker.