Steel Authority of India Limited (SAIL) has signed a memorandum of understanding with Rajasthan State Mines & Minerals Limited (RSMML) for long-term supply of low-silica limestone, a critical input of steel making. RSMML, an undertaking of the Government of Rajasthan, is the largest supplier of low-silica limestone for steel making in the country.
The MoU, signed by SAIL Executive Director (Corporate Materials Management Group) Mr. C.S. Sharma and Mr. Alok Gupta, IAS and Managing Director, RSMML, in Udaipur yesterday, will ensure security of supply of the input for a period of 10 years starting 2008-09.
The MoU will also enable RSMML to enhance its capacity in view of assured demand. RSMML has agreed to supply around 2.1 million tonnes of low-silica limestone to SAIL during the current financial year. The volume will gradually increase to around 4.4 million tonnes by 2017-18 in tandem with the planned rise in SAIL's hot metal production capacity in the coming years.