SAIL and RITES Ink Major Deal for Diesel Locomotive Engines, Shares in Focus

• SAIL and RITES Limited, two government-owned companies, signed an MoU for leasing and maintenance of diesel locomotive engines.
• The partnership aims to strengthen logistics and enhance business efficiency at SAIL's plants and mines, which rely on a mini-rail network.
• RITES will provide expertise in diesel engine operation and maintenance, leveraging Indian Railways' workshops and staff, as Indian Railways shifts to electric locomotives.
• This collaboration allows both companies to focus on core competencies, improve cost control, increase operational efficiency, and reduce carbon footprint.
• SAIL shares closed with a 0.58% gain at ₹149.49, while RITES shares rose 1.17% to ₹220.94 on Monday, February 2.

Why It Matters: SAIL and RITES partnered for diesel locomotive maintenance, boosting efficiency and logistics, with shares showing gains.