New Delhi: SAIL’s Rourkela Steel Plant (RSP) has signed a strategic Memorandum of Understanding (MoU) with Indian Oil Corporation Limited (IOCL) to ensure the annual supply of 7,500 metric tonnes (MT) of sulphur pellets, strengthening the plant’s raw material security and improving production efficiency.
The long-term agreement will support the Coal Chemicals Department of Rourkela Steel Plant in manufacturing sulphuric acid, a critical requirement for various chemical processing operations within the integrated steel complex.
SAIL RSP-IOCL MoU Ensures Three-Year Assured Supply of Sulphur Pellets
The MoU has been signed for an initial period of three years, with a provision for a further two-year extension based on mutual agreement.
The agreement was signed at the ED (MM) Conference Hall of Rourkela Steel Plant in the presence of senior officials.
The MoU was signed by:
- T Vinod, Chief General Manager (Materials Management), RSP.
- Prakash Bharati, Divisional Institutional Business Head, Sambalpur Division, IOCL.
Senior officials present during the ceremony included:
- Anil Kumar, Executive Director (MM), RSP.
- Debadutta Rautray, General Manager, Institutional Business, IOCL.
- Rakesh Joshi, CGM (CO & CCD), RSP.
- Other senior representatives from both organisations.
Key Details of SAIL-IOCL Sulphur Pellet Supply Agreement
The partnership focuses on ensuring a reliable supply chain for an important industrial raw material.
Agreement Highlights:
- Supplier: Indian Oil Corporation Limited (IOCL)
- Receiver: Coal Chemicals Department, SAIL Rourkela Steel Plant
- Material: Industrial sulphur pellets
- Annual Supply Quantity: 7,500 MT
- Agreement Period: 3 years with a possible 2-year extension
- Main Objective: Supporting sulphuric acid production at RSP
Sulphur Pellets to Support Sulphuric Acid Production
Sulphur pellets are an essential input for producing high-purity sulphuric acid at the Coal Chemicals Department of Rourkela Steel Plant.
Sulphuric acid plays an important role in:
- Chemical recovery processes.
- Processing of chemical by-products generated during coke production.
- Supporting metallurgical operations.
- Improving efficiency of integrated steel production systems.
The assured supply from IOCL will help maintain uninterrupted availability of this critical material.
Partnership to Improve Supply Chain Reliability and Cost Efficiency
The SAIL-IOCL collaboration is expected to strengthen RSP’s operational stability by reducing dependence on uncertain market sources.
Major benefits of the agreement include:
Reliable Raw Material Availability
The direct supply arrangement will minimise procurement risks and ensure continuous availability of sulphur pellets.
Better Cost Management
Sourcing directly from IOCL will reduce supply chain complexities and provide better control over input costs.
Improved Operational Efficiency
A stable supply of sulphur pellets will support smooth functioning of downstream chemical processes at the steel plant.
Supporting India’s Self-Reliant Steel Manufacturing Goals
The agreement reflects the importance of strengthening domestic supply chains for critical industrial materials.
The collaboration between two major public sector enterprises supports:
- Resource optimisation.
- Manufacturing efficiency.
- Operational reliability.
- Self-reliant industrial growth.
The initiative aligns with the broader objectives of improving resilience in India’s steel production ecosystem.
MoU Strengthens RSP’s Commitment to Efficient Operations
SAIL Rourkela Steel Plant stated that the agreement with IOCL is part of its continuous efforts to adopt advanced practices, streamline procurement systems and ensure uninterrupted availability of essential raw materials.
The assured sulphur pellet supply is expected to support sustained production, enhance reliability and improve efficiency in the Coal Chemicals Department.
The MoU framework and agreement terms were prepared by H Rout, AGM (MM-Purchase) and D K Das, Deputy Manager (MM-Purchase) under the guidance of G S Goswami, GM (MM-Purchase).
About SAIL
Steel Authority of India Limited (SAIL) is one of India’s largest steel producers and a Maharatna public sector enterprise under the Ministry of Steel. The company operates several integrated steel plants, including the Rourkela Steel Plant, and plays a key role in supporting India’s infrastructure and industrial development.
About IOCL
Indian Oil Corporation Limited (IOCL) is India’s largest commercial oil company and a Maharatna public sector enterprise under the Ministry of Petroleum and Natural Gas. IOCL operates across refining, fuel distribution, petrochemicals and energy solutions, supplying critical industrial products to support India’s economic growth.
Read also: SAIL Awards ₹673.32 Crore Contract to SEPC for IISCO Steel Plant Expansion Project in Burnpur
