Sical Logistics SAIL Contract: Rs 39.23 Crore for Dalli Mine Work

Sical Logistics has won a Rs 39.23 crore contract from Steel Authority of India (SAIL) to dig and haul iron ore at the Dalli Mechanised Mine in Chhattisgarh. Work starts on 05 Oct 2026 and runs to 18 Nov 2028. It is a small award by listed-contractor standards, but it is exactly the kind of job that keeps excavators and tippers busy for two full seasons, and it lands in a belt where local machine owners often pick up the overflow.

What Sical disclosed

Sical told the stock exchanges about the order over the weekend, and CNBC TV18 and TipRanks both reported the filing on 04 Oct with identical figures and dates. The company said the award is not a related-party deal. The filing does not give a tonnage, a bench plan or a fleet list. Dalli sits in the Dalli Rajhara iron ore complex in Balod district, one of the captive mines that feed SAIL’s Bhilai Steel Plant.

What does Rs 1.5 crore a month buy at an iron ore pit?

Spread over the 25-odd months, the contract is worth about Rs 1.5 crore a month before GST. On an excavate-and-haul job that money has to cover diesel, operators, maintenance and the cost of owning or hiring the machines, so the fleet behind it is modest: a handful of mining excavators loading a string of tippers or rear dump trucks, with a wheel loader on stockpiles and a grader keeping the haul road open. Without a tonnage figure nobody outside SAIL and Sical can work out the rate per tonne, so treat any fleet count you hear as a guess.

Two details matter more than the headline value. First, the scope covers subgrade ore and ICW as well as saleable ore, so the trucks will be moving lower-value material too, and haul distance rather than dig rate may set the fleet size. Second, the start date is two days after the letter. That leaves no time to import or build machines, which suggests the job runs on equipment already in Sical’s yards or with local sub-contractors.

Our take: for owners in Balod, Durg and the wider Chhattisgarh mining belt, the likely opening is sub-hire of tippers and mid-size excavators rather than a fresh purchase order. Sical already runs coal work for Northern Coalfields and Mahanadi Coalfields, according to CNBC TV18, and contractors stretched across several sites often top up with hired machines in the first months. A 25-month term is long enough for a hire deal to beat buying a used machine outright, provided the monthly rate covers the owner’s EMI and fuel risk sits with the contractor. Check that clause before you sign.

FAQ

What contract did Sical Logistics win from SAIL?

A Rs 39.23 crore order, excluding GST, for excavation and transportation of iron ore, ICW and subgrade ore from Phase 6 of the Dalli Mechanised Mine in Chhattisgarh. The letter of award is dated 03 Oct 2026.

How long does the Dalli mine contract run?

From 05 Oct 2026 to 18 Nov 2028, a little over 25 months. That works out to roughly Rs 1.5 crore of work a month before GST.

Which machines does an iron ore excavation and transport job use?

Typically mining excavators for loading, tippers or rear dump trucks for haulage, a wheel loader at the stockpile and a motor grader for haul-road upkeep. Sical has not disclosed the fleet or the tonnage for this contract.

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Source: CNBC TV18 (via TradingView)

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