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SAIL signs MoUs with Defence construction agencies

New Delhi, June 30, 2009

Steel Authority of India Limited (SAIL) signed memoranda of understanding with the Military Engineering Services (MES) and the Married Accommodation Project (MAP) of the Ministry of Defence, Government of India for assured supply of superior grade construction steel on a regular basis for their infrastructure development. SAIL will supply mainly earthquake-resistant SAIL-TMT rebars which meet the stringent physical and chemical specifications of MES and MAP.

The MoUs were signed by V.K. Mehta, Executive Director (Marketing – Long Products), SAIL, Maj. Gen. Brajesh Kumar, Director General (Works), MES, and Maj. Gen. B.B. Sharma, Director General (Works), MAP, in the presence of SAIL Chairman S.K. Roongta, Director (Commercial), SAIL Shoeb Ahmed and Engineer-in-Chief, MES Lt. Gen. Gautam Dutt, VSM.

MES is one of the largest government construction agencies in India and provides works cover to the Indian Army, Navy and Air Force. It has a large number of units spread across the entire country. MES also undertakes civil works for (Defence Research & Development Organisation (DRDO), Coast Guard, Kendriya Vidyalaya Sangathan and other government organisations. SAIL’s MoU with MES will be valid for all works to be executed by the latter.

MAP is the wing which is specifically assigned to build accommodation for serving defence personnel. It has decided to build 66,727 dwellings in phase-II of its housing project for defence personnel at a cost of Rs. 9,500 crore. In phases III and IV, MAP has plans to build 36,423 and 34,073 dwellings, respectively. SAIL’s MoU with MAP will be valid for all these phases.

Speaking on the occasion, Roongta said that the MoUs are another milestone in strengthening the longstanding relationship that SAIL has with defence establishments. He mentioned that SAIL has developed special grade steels which are used by defence for making armoured vehicles, tanks, warships, aircraft carriers, etc. Ahmed in his address remarked that SAIL is committed to continuing this tradition and requirements for our defence establishments will get the highest priority not just in terms of supplies but also in terms of maintaining highest quality standards.

On his part, Lt. Gen. Dutt expressed satisfaction on conclusion of the MoUs which he described as "landmark agreements". He was convinced that SAIL would be able to meet all the quality specifications of defence construction steel requirements.

Through these MoUs, SAIL will benefit in terms of assured orders and the defence establishments will have the assurance of committed supplies of quality steel products on priority basis. SAIL will establish a coordination set-up that will function as a single window for all MES/MAP contractors in all zones of the country.

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