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Project Report on


Submitted to the TSR&TBK DEGREE & PG COLLEGE, Visakhapatnam in partial fulfillment for the award of MASTER OF BUSINESS ADMINISTRATION Prepared by

Sneha Desaraju Regd. No. 111134207010 Under the able support of Shri O Rama Mohan Rao AGM (HRD) & Shri M.L SRINIVASA VARMA Dy. Manager (HRD)

Under the guidance of SHRI K SANJEEVA RAO Assistant General Manager Personnel Department


To whomsoever it may concern This is to certify that the project work entitled, Welfare Measures in Visakhapatnam Steel Plant is a bonafide work carried out by Ms. DESARAJU.SNEHA (a student of BBM, Regd. No. 111134207010) under my guidance for the partial fulfillment of the requirement for the award of the Degree in BACHELOR OF BUSINESS MANAGEMENT from TSR&TBK DEGREEE & PG COLLEGE

(SHRI K SANJEEVA RAO) Asst. General Manager Personnel Dept. R I N L / VSP Place: Visakhapatnam Date: 28-5-2013

I hereby solemnly declare that this Project Report entitled Welfare measures with reference to Visakhapatnam Steel Plant at Visakhapatnam, submitted by me to the Andhra University in partial fulfillment for the award of the Degree Bachelor of Business management is of my own and has not been submitted to any other University /Institution for the award of any Degree.

Place: Visakhapatnam Date: 28-05-2013


At the very outset, I would like to thank Sri Y. R. Reddy, General Manager (CP&C), Visakhapatnam Steel Plant for his valuable guidance and timely advice during the study period for the successful completion of the Project work. I also thank the executives of Welfare department of

Visakhapatnam Steel Plant who have given all the necessary support during the study.



: Introduction


: Steel Industry Profile


: Vizag Steel Profile



: Conceptual profile



: Findings, Analysis,Interpretation

89 113

6. CHAPTER : Summary and Suggestions


: Bibliography





INTRODUCTION: The concept of welfare is dynamic and varies with times, region, industry, country, social values, customs, degree of industrialization, the general socio-economic development of the people and the political ideologies prevailing. It is also moulded according to the age group, sex, socio-cultural level of workers in various industries. However, efforts have been made by expert bodies about the concept of welfare. A few of these definitions are given below: The Oxford dictionary defines Employees welfare as efforts to make life worth living for workmen" while the Chamber's dictionary defined welfare as a state of faring or doing well; freedom from calamity, enjoyment of health and prosperity".

The encyclopedia of social sciences defines. The voluntary efforts of the employers to establish within the existing industrial item working and something as living and cultural conditions of employees beyond; as required by law, the customs of the industry and the conditions of market". R.R. Hopkins: Welfare is fundamentally an attitude of mind on the part of management.

The real need for welfare arises from the two basic conditions generally known as the long arm of job and the social invasion of the factory. The working environment of any job in a factory or mine or a workshop imposes some adverse effect on the workers because of the heat, noise, and fumes etc., involved in the manufacturing process. There are also occupational hazards and environmental problems inherent and inevitable in manufacturing process itself, which cannot be removed or reduced. This can be referred to as the long arm of the job.

This stretches out its adverse effect on to the worker, long after his normal working hours, affecting his physical and mental well-being. services within the factory or work place is felt. Thus, the term Welfare is a comprehensive term, which includes any activity connected with social, moral, economic betterment of workers provided by any agency. Such activities may differ from country to country and from region to region and from Firm to Firm. 2 Hence, the need of welfare

OBJECTIVES: The objectives of the study are

To know about the Company in brief and to understand the Personnel Department at RINL-VSP To understand the extent to which the welfare measures provided by Visakhapatnam steel plant, towards their employees. To know the level of awareness of employee about the various welfare measures provided to them. To study how the welfare facilities provided help in increasing the productivity and job satisfaction. To learn how welfare services provided to employees help organization to build up a stable work force by reducing absenteeism and labor turnover. To offer useful suggestions for improving the effectiveness of welfare measures.

NEED FOR THE STUDY: Welfare in the broader sense means well-being of the employee. Welfare measures are the steps taken by the management to create a good environment in which the workers feel satisfied both physically and mentally and in the end, produce the best results by putting their maximum efforts.

As a result, productive devices and compensatory benefits have to be provided for the welfare of the workers. This can be referred to as the long arm of the Job which stretches out its adverse effect on to the workers, long after normal working hours, affecting his physical and mental well-being. Hence, the need of welfare services within the factory or work place is felt. Regarding the aspect of social invasion of the factory when a worker comes to his work place, he is not an isolated individual but a member of society having family members. Hence, the imperative need to provide welfare services to satisfy his personal and family needs is felt.

RESEARCH METHODOLOGY: Research methodology is the systematic way to solve the research problems. The relevant data has been collected from two different sources
Primary source. Secondary source.

Primary source: The primary data is collected through observations and also through questionnaire. The questionnaire is circulated among the employees to collect information. Secondary source: The secondary data is collected through company journals, intranet and internet.

QUESTIONNAIRE ADMINISTRATION: The questionnaire was prepared after counseling with the Company Guide. A set of questionnaire was prepared. A five point scale strongly agree to strongly disagree was used for this purpose.

SAMPLE DESIGN: A sample of 100 respondents was taken using random sampling. The researcher contacted the employees personally and brief summary of the nature of the study and details in the questionnaire were narrated to them.

PERIOD OF STUDY: The present study had been undertaken for period of 6 weeks, in which it had divided into three stages as such. Stage I is of research problem and collection the literature of the topic chosen. Stage II is of analysis and interpretations by using different statistical tools, findings and recommendations.

STATISTICAL TOOLS USED: For the purpose of present study percentage analysis was used.

SIGNIFICANCE OF THE STUDY: Welfare amenities are provided in an effort to motivate and enhance the benefits to the employees, the industry and the society as a whole. They are, thus, essential for Industrial Democracy. With the rapid development of newer and improved

technologies, tremendous changes are taking place all around us. Employees are becoming more and more knowledgeable with greater aspirations. They aspire for improved quality of life and working conditions. Given the above backdrop and the challenges ahead of RINL, Visakhapatnam Steel Plant, provision of Welfare amenities assumes a very significant role for survival and growth of the company. In this context, the implications of Welfare measures in VSP can be stated as follows:

It affords the workers a sense of belongingness to the organization and a sense of commitment. It helps in motivating employees to achieve organizational goals. Workers get induced to contribute their best with a sense of commitment. It ensures minimum industrial conflict and accelerates economic growth.

SCOPE: The study covers all the statutory welfare measures namely canteens, washing facilities, resting facilities, dress and storing facilities, sanitary and drinking water facilities and the non-statutory welfare measures namely education, housing, cooperative societies, transport and recreation.

It also includes a study on issues like grievance handling and working environment, which also have impact on the overall welfare of the worker.

The study is conducted only on employees of Visakhapatnam Steel Plant, which forms the universe of this study

LIMITATIONS OF STUDY: The findings of the present study cannot be generalized as they are based purely limiting to the one unit of this singular organization without giving any comparisons to the practices in similar industry. Being a company spread all over India, for all practical reasons and limitations, we may not be able to travel to all Steel Plant units. Thus, this study limits to the Visakhapatnam Steel Plant only.

This study is more of professional oriented. Hence it cannot be constructed to denote and / or purported to standardize as a model for this project. A few limitations and constraints came in way of conducting the present study, under which the researcher had to work are as follows:

The sample size chosen is covered only a small portion of the whole population of STEEL PLANT and the outcome cannot be a reliable one. The study is confined to limited period i.e. Six weeks. Accuracy of the study is purely based on the information as given by the respondents. Data collected cannot be asserted to the free from cores, as the sample size restricted to the employees. To prepare such kind of report is very tough task because there is the possibility that employee may hide some truth or information. Although all attempts were made to make this an objective study, biases on the part of respondents might have resulted in some subjectivity. Though, no effort was spared to make the study most accurate and useful, the sample Size selected for the same may not be the true representative of the Company, resulting in biased results.

This being the maiden experience of the researcher of conducting study such as this, the possibility of better results, using deeper statistical techniques in analyzing and interpreting data may not be ruled out.


Steel Industry Profile


INTRODUCTION TO STEEL INDUSTRY IN INDIA Steel is crucial to the development of any modern economy and is considered to be the backbone of human civilization. The level of per capita consumption of steel is treated as an important index of the level of socioeconomic development and living standards of the people in any country. It is a product of a large and technologically complex industry having strong forward and backward linkages in terms of material flows and income generation. All major industrial economies are characterized by the existence of a strong steel industry and the growth of many of these economies has been largely shaped by the strength of their steel industries in their initial stages of development. Steel industry was in the vanguard in the liberalization of the industrial Sector and has made rapid strides since then. The new Greenfield plants represent the latest in technology. Output has increased, the industry has moved up i n the value chain and exports have raised consequent to a greater integration with the global economy. The new plants have also brought about a greater regional dispersion easing the domestic supply position notably in the western region. At the same time, the domestic steel industry faces new challenges. Some of these relate to the trade barriers in developed markets and certain structural problems of the domestic industry notably 8

due to the high cost of commissioning of new projects. The domestic demand too has not improved to significant levels. The litmus test of the steel industry will be to surmount these difficulties and remain globally competitive.

HISTORY OF STEEL Steel was discovered by the Chinese under the reign of Han dynasty in 202 BC till 220 AD. Prior to steel, iron was a very popular metal and it was used all over the globe. Even the time period of around 2 to 3 thousand years before Christ is termed as Iron Age as iron was vastly used in that period in each and every part of life. But, with the change in time and technology, people were able to find an even stronger and harder material than iron that was steel. Using iron had some disadvantages but this alloy of iron and carbon fulfilled all that iron couldnt do. The Chinese people invented steel as it was harder than iron and it could serve better if it is used in making weapons. One legend says that the sword of the first Han emperor was made of steel only. From China, the process of making steel from iron spread to its south and reached India. High quality steel was being produced in southern India in as early as 300 BC. Most of the steel then was exported from Asia only. Around 9th century AD, the smiths in the Middle East developed techniques to produce sharp and flexible steel 26 blades. In the 17th century, smiths in Europe came to know about a new process of cementation to produce steel. Also, other new and improved technologies were gradually developed and steel soon became the key factor on which most of the economies of the world THE GLOBAL STEEL INDUSTRY: The current global steel industry is in its best position in comparing to last decades. The price has been rising continuously. The demand expectations for steel products are rapidly growing for coming years. The shares of steel industries are also in a high pace. The steel industry is enjoying its 6th consecutive years of growth in supply and demand. And there is many more merger and acquisitions which overall buoyed the industry and showed some good results. The supreme crisis has lead to the recession in economy of different countries, which may lead to have a negative effect on whole steel industry in coming years. However steel production and consumption will be supported by continuous economic growth

CONTRIBUTION OF COUNTRIES TO GLOBAL STEEL INDUSTRY The countries like China, Japan, India and South Korea are in the top of the above in steel production in Asian countries. China accounts for one third of total production i.e. 419m ton, Japan accounts for 9% i.e. 118 m ton, India accounts for 53m ton and South Korea is accounted for 49m ton, which all totally becomes more than 50% of global production. Apart from this USA, BRAZIL, UK accounts for the major chunk of the whole growth.
Country Wise Crude Steel Production During The Year Of 2007-08 Country CHINA JAPAN UNITED STATES RUSSIA SOUTH KOREA F.R.GERMANY UKRAINE BRAZIL 272.5 112.7 98.9 65.6 47.5 46.4 38.7 32.9 Crude Steel Production (mtpa)



32.6 28.4

Indias crude steel output was 68.32 million tons during 2010. The country managed to expand the capacity for crude steel production from 72.76 million tons per annum mtpa in 2009-10 to 78 mtpa in 2010-11.


According to government, public sector steel companies performed well during the year. Their combined profit after tax was Rs8605 crore during the period AprilDecember 2010. Realising it report card for the year 2010-11, the government said that the process of drafting a new National Steel Policy has been initiated. A five year strategy paper has been prepared for promotion of the steel sector. A policy paper on research & development has also been prepared with special focus on beneficiation, coal ash reduction and promotion of high grade value added steel in the country, it added.



Vizag Steel Profile



Name of the Company Company Identification Date of Incorporation

Rashtriya Ispat Nigam Limited U27109AP1982GOI003404 Number (CIN) 18th February 1982 Incorporated as a Government Company

Mode of Incorporation

under the provisions of the Companies Act, 1956

Administrative Ministry Present Status

Ministry of Steel Govt. of India A Govt. Company within the meaning of Section - 617 of the Companies Act, 1956 Rashtriya Ispat Nigam Limited Visakhapatnam Steel Plant Administrative Building Visakhapatnam - 530 031 Website :

Address of Registered Office:


HISTORY: On 17 April 1970, the then prime minister of India, Late Mrs. Indira Gandhi announced the government's decision establish in a the Parliament plant to at


Visakhapatnam. The activities kicked off by appointing in site selection and




subsequently the committees report was approved for site. On 20 January 1971 she laid the foundation stone.

Consultants were appointed in February 1971, and feasibility reports were submitted in 1972. The first block of land was taken over on 7 April 1974. M/s M.N. Dastur & Co was appointed as the consultant for preparing the detailed Project report in April 1975 and in October 1977 they have submitted the report for 3.4 mtpa of liquid steel. With the offer for assistance from government of erstwhile USSR, a revised project concept was evolved. Detailed Project Report for a plant capacity of 3.4 Mtpa was prepared by M/s M.N. Dastur & Co in November 1980. In February 1981 the contract was signed with USSR for preparation of working drawings for coke ovens, Blast Furnace and sinter plant. The blast furnace foundation was laid with first mass concreting in the project in January 1982. The construction of township also started.

A new company Rashtriya Ispat Nigam Limited (RINL) was formed on 18 February 1982. Visakhapatnam Steel Plant was separated from SAIL and RINL was made the corporate entity of Visakhapatnam Steel Plant in April 1982.

Vizag Steel Plant is the only Indian shore-based steel plant, and it has massive land, up to 19,000 acres (7,700 ha), and is poised to become up to 20 MT in a single campus and turnover in 2011-2012 was 14,457Crores. On 20th May, 2009 Honorable Prime Minister Manmohan Singh launched the expansion project of Visakhapatnam Steel Plant from a capacity of 3.6MT to 6.3MT at a cost of Rs. 8,692 Crores. But the investment was revised to 14,489 crores with following classification:

Expenditure for the financial year 2009-10 Rs 1840 Crore 15

Rs 5883 Crores since inception of the Project Total Commitment, including enabling works, steel procurement, Consultancy, Spares, etc is Rs 11591 Crores as on 25.03.10.

The expansion project is expected to become functional by 2012. VISION: To be a continuously growing world class company we shall
Harness our growth potential and sustain profitable growth. Deliver high quality and cost competitive products and be the first choice of customers. Create an inspiring work environment to unleash the creative energy of people. Achieve excellence in enterprise management. Be respected corporate citizen, ensure clean and green environment and develop vibrant communities around us.

MISSION: To attain 20 million ton liquid steel capacity through technological up-gradation, operational efficiency and expansion; augmentation of assured supply of raw materials; to produce steel at international standards of cost and quality; and to meet the aspirations of the stakeholders. OBJECTIVES:
Expand plant capacity to 6.3Mt by 2012-13 with the mission to expand further in subsequent phases as per Corporate Plan Revamping existing Blast Furnaces to make them energy efficient to contemporary levels and in the process increase their capacity by 1 Mt, thus total hot metal capacity to 7.5 Mt Be amongst top five lowest cost liquid steel producers in the world Achieve higher levels of customer satisfaction Vibrant work culture in the organization Be proactive in conserving environment, maintaining high levels of safety & addressing social concerns

Commitment Customer Satisfaction Continuous Improvement Concern for Environment Creativity & Innovation


Visakhapatnam Steel Plant (VSP), the first coast based Steel Plant of India is located, 16 KM South West of city of Destiny i.e. Visakhapatnam. Bestowed with modern technologies, VSP has an installed capacity of 3 million Tonnes per annum of Liquid Steel and 2.656 million Tonnes of saleable steel. At VSP there is emphasis on total automation, seamless integration and efficient up gradation, which result in wide range of long and structural products to meet stringent demands of discerning customers within India and abroad. VSP products meet exacting International Quality Standards such as JIS, DIN, BIS, BS etc.

VSP has become the first integrated Steel Plant in the country to be certified to all the three international standards for quality (ISO-9001), for Environment

Management (ISO-14001) & for Occupational Health & Safety (OHSAS-18001). The certificate covers quality systems of all Operational, Maintenance and Service units besides Purchase systems, Training and Marketing functions spreading over 4 Regional Marketing Offices, 24 branch offices and stock yards located all over the country.

VSP by successfully installing & operating efficiently Rs. 460 crores worth of Pollution Control and Environment Control Equipments and converting the barren landscape by planting more than 3 million plants has made the Steel Plant, Steel Township and surrounding areas into a heaven of lush greenery. This has made Steel Township a greener, cleaner and cooler place, which can boast of 3 to 4 C lesser temperature even in the peak summer compared to Visakhapatnam City. VSP exports Quality Pig Iron & Steel products to Sri Lanka, Myanmar, Nepal, Middle East, USA, China and South East Asia. RINL-VSP was awarded "Star Trading House" status during 1997- 2000. Having established a fairly dependable export market, VSP plans to make a continuous presence in the export market. Having a total manpower of about 16,600 VSP has envisaged a labour productivity of 265 Tonnes per man year of Liquid Steel.

BACKGROUND With a view to give impetus to Industrial growth and to meet the aspirations of the people from Andhra Pradesh, Government of India decided to establish Integrated 17

Steel Plant in Public Sector at Visakhapatnam (AP). The announcement to this effect was made in the Parliament on 17th April 1970 by the then Prime Minister of India late Smt. Indira Gandhi. A site was selected near Balacheruvu creak near Visakhapatnam city by a Committee set up for the purpose, keeping in view the topographical features, greater availability of land and proximity to a future port. The foundation stone for the plant was laid by Smt. Gandhi on 20.01.1971.

Seeds were thus sown for the construction of a modern & sophisticated Steel Plant having annual capacity of 3.4 Million Tonnes of hot metal. An agreement was signed between Governments of India and the erstwhile USSR on June 12th, 1979 for setting up of an Integrated Steel Plant to produce structural & long products on the basis of detailed Project report prepared by M/s M.N. Dastur & Company. A Comprehensive revised DPR jointly prepared by Soviets & M/s Dastur & Company was submitted in Nov 1980 to Govt. of India.

The construction of the Plant started on 1st February 1982. Government of India on 18th February 1982 formed a new Company called Rashtriya Ispat Nigam Ltd. (RINL) and transferred the responsibility of constructing, commissioning & operating the Plant at Visakhapatnam from Steel Authority of India Ltd. to RINL.

Due to poor resource availability, the construction could not keep pace with the plans which led to appreciable revision of the plant cost. In view of the critical fund situation and need to check further increase in the plant costs, a rationalized concept was approved which was to cost Rs. 6849 crores based on 4th Quarter of 1988.

The rationalized concept was based on obtaining the maximum output from the equipments already installed, planned / ordered for procurement and achieving higher levels of operational efficiency and labour productivity. Thus the plant capacity was limited to 3.0 Million tonnes of Liquid Steel per annum. In the process, one of the Steel Melt Shops and one of the mills were curtailed.

The availability of resources were continued to be lower than what was planned and this further delayed the completion of the construction of the plant. Finally all the units were constructed and commissioned by July 92 at a cost of Rs. 8529 crores. 18

The plant was dedicated to nation by the then prime Minister of India Late Sri P. V. Narasimha Rao on 1st August, 1992. Since Commissioning VSP has already crossed many milestones in the fields of production, productivity & exports. Coke rate of the order of 509 Kg/Ton of Hot metal, average convertor life of 2864 heats an average of 23.6 heats per sequence in continuous Bloom Caster. Specific energy consumption of 6.07 G Kal / ton of liquid steel, a specific refractory consumption of 8.94 kg and a labour productivity of 265 Ton / man year are some of the peaks achieved (during the year 2004-05) in pursuit of excellence.


7 meter tall Coke Oven Batteries with coke dry quenching. Biggest Blast Furnaces in the Country Bell - less top charging system in Blast Furnace 100% slag granulation at the BF Cast House Suppressed combustion - LD gas recovery system 100% continuous casting of liquid steel. "Tempcore" and "Stelmor" cooling process in LMMM & WRM respectively Extensive waste heat recovery systems Comprehensive pollution control measures

Major Sources of Raw Materials Raw Material Source

Iron Ore Lumps & Fines Bailadila, Chattisgarh BF Lime Stone Jaggayyapeta, AP SMS Lime Stone Dubai BF Dolomite Madharam, AP SMS Dolomite Madharam, AP Manganese Ore Chipurupalli, AP Boiler Coal Talcher, Orissa Imported Boiler Coal Indonesia Imported Coking Coal Australia / US Medium Coking Coal (MCC) Kathara / Swang / Rajarappa / Kedla Imported LAM Coke China Quartzite Lump & Fines Local Sand Sarepalli, AP


Annual Department Capacity (000 T) Coke Ovens Sinter Plant Blast Furnace Steel Melt Shop LMM WRM MMSM 2,261 5,256 3,400 3,000 710 850 850 3 Batteries of 67 Ovens & 7 Mtrs. Height 2 Sinter Machines of 312 Sq. Mtr. Grate area each 2 Furnaces of 3200 Cu. Mtr. Volume each 3 LD Converters each of 133 Cu. Mtr. Volume and six 4 Strand bloom casters 4 Stand finishing Mill 2*10 Stand finishing Mill 6 Stand finishing Mill Units(3.0 Mt Stage)


Steel Products Blooms Billets Channels Angles Beams Squares Flats Rounds Re-bars Wire Rods By-Products Nut Coke Granulated Slag Coke Dust Lime Fines Coal Tar Ammonium Sulphate Anthracene Oil HP Naphthalene Benzene Toluene Zylene Wash Oil

MAJOR DEPARTMENTS Raw Material Handling Plant VSP annually requires quality raw materials viz. Iron Ore, fluxes (Lime stone, Dolomite), coking and non coking coals etc. to the tune of 12-13 Million Tonnes for producing 3 Million Tonnes of Liquid Steel. To handle such a large volume of incoming raw materials received from different sources and to ensure timely supply of consistent quality of feed materials to different VSP consumers, Raw Material 20

Handling Plant serves a vital function. This unit is provided with elaborate unloading, blending, stacking & reclaiming facilities viz. Wagon Tipplers, Ground & Track Hoppers, Stock yards Crushing plants, Vibrating screens, Single/ twin boom stackers, wheel on boom and Blender reclaimers, Stacker . cum . Reclaimer (SCR). In VSP peripheral unloading has been adopted for the first time in the country.

Coke ovens & Coal Chemical Plant (CO&CCP) Blast Furnaces, the mother units of any Steel plant require huge quantities of strong, hard and porous solid fuel in the form of hard metallurgical coke for supplying necessary heat for carrying out the reduction and refining reactions besides acting as a reducing agent. At VSP there are three Coke Oven Batteries, 7 Metre tall and having 67 Ovens each. Each oven is having a volume of 41.6 cu. metre & can hold upto 31.6 Tonnes of dry coal charge.

There are 3 Coke Dry Cooling Plants (CDCP) each having 4 cooling chambers. Nitrogen gas is used as the Cooling medium. The heat recovery from nitrogen is done by generating steam and expanding in two back pressure turbines to produce 7.5 MW each. The Coal chemicals such as Benzole (& its products), Tar (& its products), Ammonium Sulphate etc. are extracted in Coal Chemical Plant from C.O. Gas. After recovering the Coal chemicals the gas is used as a by product fuel by mixing it with gases such as BF Gas, LD Gas etc. A mechanical, biological & chemical treatment plant takes care of the effluents.

Sinter Plant Sinter is a hard & porous ferrous material obtained by agglomeration of Iron Ore fines, Coke breeze, Lime Stone fines, Metallurgical wastes viz. Flue dust, mill scale, LD slag etc. Sinter is a better feed material to Blast Furnace in comparison to Iron Ore lumps and its usage in Blast furnaces help in increasing productivity, decreasing the coke rate & improving the quality of Hot Metal produced. Hot Sinter discharged from Sintering machine is crushed to +5 mm - 50 mm size and cooled before dispatching to Blast Furnaces.


Parameters of Sintering Machines are

Total area Effective Sintering area Sinter bed height Sinter Machine Capacity

312 Sq. metre 276 Sq. metre 500 mm 400 T P H each

The dust laden air from the machines are cleaned in scrubbers & electrostatic precipitators to reduce the dust content to 100 mg/ m3 level before allowing to escape into the atmosphere and thus helping in maintaining a clean & dust free environment.

Blast Furnaces SP has two 3200 cu. metre Blast Furnaces (largest in India) equipped with Paulworth Bell less top equipment with conveyor charging. Rightly named as "Godavari" & "Krishna" after the two rivers of AP, the furnaces will help VSP in bringing prosperity to the state of Andhra Pradesh. Provision exists for granulation of 100% liquid slag at blast furnace cast house and utilization of blast furnace gas top pressure (1.5-2.0 atmospheric pressure) to generate 12 MW of power in each furnace by employing gas expansion turbines. The two furnaces with their novel circular cast house and four tap holes each are rated to produce 9720 tonnes of Hot Metal daily or 3.4 Million Tonnes of low sulphur Hot Metal annually. Record Performance of Blast Furnace department:


Productivity Power Fuel Rate Heat cons. Nut coke usage

2.23 t/m3/day Feb .06 51.31 kwh/thm Feb .06 509 kg/tom Jan .04 450 Mcal/thm Apr .05 56 kg/thm Mar .04


Day Peaks Blast Furnace-1 Blast Furnace - 2 Shop 6820 Tons 23.03.06 6805 Tons 21.03.06 13325 10.02.06 6723 Tons 31.03.93 Tons Hot metal PCM Pouring Pig Iron Despatch Monthly Peaks 374419 Tons Mar .06 107463 Tons Mar .93 110387 Tons Mar .94 150942 .02 Tons May

PCM Pouring

G. Slag Despatch

Steel Melt Shop VSP produces steel employing three numbers of top blown Oxygen Convertors called LD Convertors or Basic Oxygen Furnaces / Convertors. Each convertor is of 133 cu. Metre volume, rated to produce 3 Million Tonnes of Liquid Steel annually. Besides Hot Metal, Steel Scrap, Fluxes such as calcined lime or Dolomite form part of the charge to the Convertors. Different grades of steel of Superior quality can be made by this process by controlling the Oxygen blow or addition of various ferro alloys or special additives such as FeSi, FeMn, SiMn, Coke Breeze, Aluminum etc. in required quantities while liquid steel is being tapped from the convertor into a steel ladle. Convertor / LD Gas produced as by product is used as a secondary fuel.

Characteristics of VSP Convertors:

Capacity : 150 Tones per heat blow

Volume : 133 Cu. Metre Convertor Sp. Volume : 0.886 Metre Cube per tonne Tap to Tap Time : 45 mts - 60 mts

Liquid Steel produced in LD Convertors is solidified in the form of blooms in continuous Bloom Casters. However, to homogenize the steel and to raise its temperature, if needed, steel is first routed through, Argon rinsing station, IRUT ( Injection Refining & Up temperature ) / ladle Furnaces.


Continuous casting Department VSP has six-4 strand continuous casting machines capable of producing 2.82 million Tonnes / year Blooms of size 250 x 250 mm and 250 x 320 mm. Entire quantity of molten steel produced (100%) is continuously cast in radial bloom casters which help in energy conservation as well as production of superior quality products. Facilities at continuous casting machines include a lift and Turn table for ladles, Copper mould, oscillating system tundish, Primary & Secondary Cooling arrangement to cool the steel bloom. Gas cutting machines for cutting the blooms in required lengths ( Av. 6 metres long ).

Rolling Mills Blooms produced in SMS-CCD are shaped into products such as Billets, rounds, squares, angles (equal & unequal), Channels, I-PE Beams, HE Beams, Wire rods and reinforcements bars by rolling them in three sophisticated high capacity, high speed, fully automated\ rolling mills, namely Light & Medium Merchant Mills (LMMM), Wire Rod Mill (WRM) and Medium Merchant and Structural Mill (MMSM).

Light & Medium Merchant Mill (LMMM) LMMM comprises of two units. In the Billet/Break down mill 250 x 320 mm size blooms are rolled into Billets of 125 x 125 mm size. Billets are supplied from this mill to Bar Mill of LMMM & Wire Rod Mill. The Bar mill is facilitated with temp core heat treatment technology evaporative cooling system in walking beam furnaces, automated pilling & bundling facilities, high degree of automation and

computerization. The mill is designed to produce 710,000 tons per annum of various finished products such as rounds, rebars, squares, flats, angles, and channels besides billets for sale.

Wire Rod Mill (WRM) Wire Rod Mill is fully automated & sophisticated mill. The billets are rolled in 4 strand, high speed continuous mill having a Annual Capacity of 8,50,000 Tonnes of Wire Rod Coils. The mill produces rounds in 5.5 - 14 mm range and rebars in 8, 10 & 12 mm sizes. The mill is equipped with standard and Retarded Stelmor controlled cooling lines for producing high quality Wire rods in Low, Medium & High carbon


grade meeting the stringent National & International standards viz. BIS, DIN, JIS, BS etc. and having high ductility, uniform grain size, excellent surface finish.

Medium Merchant & Structural Mill (MMSM) This mill is a high capacity continuous mill. The feed material to the mill is 250 x 250 mm size blooms, which is heated to rolling temperatures of 1200 C in two walking beam furnaces. The mill is designed to produce 8,50,000 tons per annum of various products such as rounds, squares, flats, angles (equal & unequal), T bars, channels, IPE beams I HE beams (Universal beams) AUXILIARY FACILITIES Thermal Power Plant The average power demand of all units of VSP when operating at full capacity will be around 230 MW. The captive Generation capacity of 286.5 MW is sufficient to meet all the plant needs in normal operation time. In case of partial outage of Captive Generation Capacity due to brake down/ shutdown/ or other reasons, the short fall of power is availed from State Grid. The Captive Generation capacity comprises of
TPP : 247.5 MW (3 X 60 MW + 1 X 67.5 MW) Back Pressure Turbines (C&CCD) : 2 X 7.5 MW Gas Expansion Turbines (BF) : 2 x 12 MW

Power plant also meets the Air Blast requirement of Blast Furnaces through 3 Turbo Blowers each of 6067 NM3/hr capacity. In addition to the above, Power Plant also supply process steam, DM Water, Chilled Water, Soft Water to various units of VSP.

DNW Department Distribution network (DNW) Department deals with receipt, transmission of electrical power at Extra High Voltage (EHV) 220 KV level, distribution of High Tension (HT) power at 33 KV, 11 KV and 6.6 KV level. Operation and maintenance of power handling equipment at 220 KV and maintenance of equipment at 33 KV, 11 KV and 6.6 KV (except for shop HVMCC & contractors) is carried out by the department. Operation of shop HT equipment and operation & maintenance of shop LT power distribution equipment are in the scope of respective shops. DNW department also coordinates with AP TransCo. and APEPDCL for export and import of power respectively.


Traffic Department A Steel plant of the size of VSP has to handle around 60-65 MT traffic comprising of incoming traffic (different raw materials etc.), outgoing traffic (finished / saleable steel products, pig iron, granulated slag, byproducts etc.) and in process traffic viz. Cast P I, Mill scrap, Mill scale, hot metal, etc. Of this 50% is transported by belt conveyors, 45% by Rail Transport and 5% by Road. VSP has the distinction of having peripheral unloading system for the 1st time in Steel Industry. To handle this huge quantities of traffic, VSP has a fleet of 31 locomotives, Hot Metal ladle cars, Torpedo ladle cars, Captive wagons of different types, 5 internal Railway stations, loco and wagon repair shop, number of weigh bridges. Engineering shops & Foundry (ES & F) Engineering Shops & Foundry department is set up to meet the requirements of spares, repair of assembliesand reclamation of various jobs of different departments. This complex consists of 1.Central Machine Shop (CMS) 2.Steel Structural Shop (SSS) 3.Foundry 4. Forge Shop (FS) 5.Utility Equipment Repair Shop (UERS).

In Central machine shop, various spares like Gears, Shafts, Crusher liners, hammers, machined castings and fabricated jobs are made. In addition to the manufacturing spares, assembly and repair jobs like gear boxes, Crusher, bearing housings, stands of SMS are taken up. Over 100 major machines including lathes, milling, Plano milling, boring, slotting, shaping, grinding etc. are available to take up machining of spares. 2 presses of 630 ton, 315 ton and dynamic balancing machine of 25 ton capacity, are provided at CMS for repair of assemblies.

At Structural shop of ES&F, structural jobs of various departments like coke bucket, ladle, SRC body, Wagons, Shells, ducts etc. are being fabricated or repaired as per the requirement of departments. The equipments available are Bending machine25mm capacity, Shearing machine-25mm capacity, CNC profile gas cutting machine, welding machines, gas cutting sets, other tools and tackles.

In Foundry, castings of Iron, steel and non-ferrous are produced based on the projection of customer departments. 8 ton Arc furnace, 2nos of 5ton Induction furnaces and 1 ton crucible furnace for non-ferrous jobs and sand plant for 26

preparation of sand for moulds are available for making castings. Major jobs like Hot metal runners of 10 tons weight , Bottom funnel(5 ton), Emergency containers(7 ton), lower mantle and Bowl liners(3 tons each) etc are produced.

In Forge shop, preparation of raw materials for shafts, coupling flanges, gears etc and also of forge shapes such as crusher hammer heads, V -hooks, drill rods with the help of 0.5 ton, 2 ton, 3 ton pneumatic hammers, manipulators, heating furnaces is carried out.

In Utility Equipment Repair Shop, repair of ventilation equipments, valves, fans and impellers is carried out. Equipments like shearing machine, bending machine, presses, lathes etc are provided to take up different repair and manufacturing activities.

Field Machinery Department FMD deals with operation and maintenance of Heavy Earth Moving Equipment, Material Handling Equipment like Cranes, Fork lifts, Tractor trailers and Vehicles. Our equipments are utilized for material transportation, maintenance jobs, house keeping etc. FMD is one of the critical service department, whose services are directly involved in operational activities at many production departments like Coke Ovens, Sinter Plant, Blast Furnace, Steel Melting Shop etc. In addition to the above, vehicles and fire tenders of VSP / CISF are maintained by FMD. Central Maintenance Electrical Maintenance of all H.T motors, L.T motors and DC motors of above 200KW. There are 810 such large rotating electrical machines spread through out the plant including 3 Nos. of 60 MW Turbo-Generators, 1 No of 67.5M TG in TPP, 2 nos of Back Pressure Turbo Generators of 7.5 MW each and 2 Nos. of Gas Expansion Turbo- Generator of 12 MW each. The service provided are as mentioned below.
Repairs, Maintenance and condition monitoring of all rotating Electrical machines of the plant. The job includes transportation, Overhauling and re-erection with precision alignment.


Maintenance of Electrics of all street lights, Tower lights and Weigh Bridges through out the plant. Electro Technical Laboratory Repairs all the defective electronic PCBs which are taken out from the equipment during their functioning. Procures and arranges spare PCB.s for the equipment of PLC.s and drive controls for motors in the plant and also for UPS systems. Involves in the plant modernisation activities and upgradation of equipment.

Electrical Repair Shop (ERS) ERS is a central repair shop to carry out repair activities like overhauling, rewinding, testing etc., of various types of AC Motors, DC Motors, HT Motors, Submersible pumps, Distribution transformers, Welding Machines, Control Transformers, Lifting magnets, Coils etc., of the plant. The Main Functions of ERS are:
Overhauling of motors Rewinding of motors, magnets, transformers, pumps, coils etc. Testing of Electrical equipment Emergency Site Repairs Performance assessment of electrical motors

Utilities Department Utilities dept. Consists of 1. Air Separation Plant 2. Compressor Houses 3. Chilled water plants and Acetylene plants. The ASP is designed to meet the maximum daily demand of gaseous oxygen, gaseous nitrogen and gaseous argon. Compressor Houses ( CH ) produce Compressed Air required for the operation of pneumatic devices, for instruments and controls, pneumatic tools and for general purpose in the various production units of Steel Plants. Chilled Water plants ( 2 Nos ) produce chilled water required for use in the ventilation and air conditioning system in areas such as office rooms, electrical control room etc. Acetylene plant produces Acetylene gas required for general purpose cutting and welding. Quality Assurance and Technological Development (QA &TD) The QA & TD dept. has been set up to take care of activities pertaining to Quality Control of Raw Materials, Semi finished products and finished products. The QA & TD labs are provided at major department like CO&CCP, SP, BF, SMS, Rolling Mills etc., in addition to Central Laboratory. The department monitors the process parameters for production of quality products. QA


& TD carries out analysis, testing and final inspection including spark testing of finished products and assigns grades to them. Environment Management Department (EnMD) The environmental parameters related to ambient air, stacks, effluents, work-zone environment, sound, waste management, sub-soil water, marine water and the fugitive emissions from the coke oven batteries are regularly monitored by the Environment Management Department (EnMD) as stipulated under consent conditions and statutory orders from APPCB/CPCB/MoEF. All these monitoring activities are carried out as per frequency prescribed by the APPCB/CPCB/MoEF and compliance with all norms is ensured. R&D R&D department has been created in 2005 to strengthen R&D activities. This department takes up various improvement projects related to areas like Process improvements, Product developments, waste utilization etc. R&D projects are carried out internally and through joint research projects with the help of external agencies viz., Research organizations and Educational Institutions like IITs, NITs, CSIR Labs, Andhra University, etc. Calcining & Refractory Material Plant CRMP consists of two units - Calcining Plant & Brick Plant. In calcining plant limestone & dolomite are calcined for producing lime & calcined dolomite which are used for refining of steel in the converters. Roll shop & Repair shop Roll shop & Repair shop is in the complex of Rolling Mills catering to the needs of mills in respect of roll assemblies, guides few Maintenance Spares and roll pass design. Geographically this dept. is in three areas as Roll shop-1, Roll shop-II and Area Repair Shop. The main activities of this shop is Roll pass Design, grooving of rolls, assembly of rolls with bearings, preparation of guides and their service and manufacture / repair of mill maintenance spares. For the first time in the country, VSP has adopted CNC technology for grooving of steel rolling mill rolls. High constant respective accuracy, higher productivity, use of standard tool for any groove turning, elimination of the use of different templates, easier to incorporate groove modification etc., are some of the advantages of CNC lathes over the conventional one.


Structural Engineering Department The main objective of Structural Engineering Department is to maintain Steel structures located inside the plant area including Boundary Lighting Towers & Watch Towers and the main functions are as below:
Inspection of all steel structures and chimneys as per schedule of inspection. Schedule of inspection is prepared for the whole year (April to March) and is circulated to all bzones and Emergency inspection is being done as when required.

Also Inspection of roof sheeting works as per schedule of inspection.

Repair / Replacement of damaged steel structures and sheeting. Arresting roof leakages in all structural buildings. Repainting of structures as a Preventive Maintenance. Removal of dust from roof and gutters of different units.

Plant Design Major functions of this unit are

Development of detailed Manufacturing Drawing and Replacement Specification drawings Suggesting New Designs and detailing by doing elaborate engineering study and Analysis StandardizationnWorks Contracts Department Processing for and obtaining administrative approval on receipt of contractual proposal from indenting departments, tendering and awarding of work. Convening tender Committee meetings and preparing recommendations for awarding work. Preparing COM / Board Note for decisions at those forum. Participating in Claims and Arbitration proceedings and legal cases pertaining to contracts. Registration of agencies under various categories & classes of works regularly.

Safety Engineering Department Safety Engineering Department advises and assists the management in the fulfillment of obligation concerning prevention of accidents and maintaining a safe working environment. SED imparts safety training as well as refresher safety training to the regular employees as well as contractor workers. SED conducts safety inspections, safety audits, mock drills and coordinatewith the departments for corrective actions in respect of unsafe conditions and unsafe actions. SED conducts safety campaigns and safety competitions amongst the employees to promote 30

safety. SED ensures that high quality safety appliances are procured and issued to the employees. SED co-ordinates and liaison with AP Factories departments. Spares Management Department The main functions of SMD are:
Rationalized spares are procured by SMD department viz., Bearings, Electrodes Conveyor belts, Idlers, Cables, etc., to cater to the needs of various departments. All the indents viz., Operation, Mechanical, Electrical, Instrumentation, Refractory etc., are processed thro. SMD department for procurement of necessary spares thro. purchase department. SMD department is coordinating pre dispatch inspection of spares for Works departments, Refractory & Coke Oven Battery . IV, etc. SMD department controls Inventory of spares, indenting & consumption budget.

Functions of Various Departments of RINL/VSP Personnel Department (Corporate Personnel, Central Employee Relations and Plant Personnel)
Manpower Planning Employees induction Service matters, policy & rules Industrial relations Employees welfare Corporate Social Responsibility (CSR) Replies to parliamentary questions Official Language implementation

Legal Affairs
Legal Affairs deals with all legal matters including arbitration, coordination with Standing Councils, Legal Advices etc.

Management Services
Quality Circle Suggestion Scheme Incentive Scheme Reward Scheme Procedural Orders etc


Training & HRD

Leadership Training Training on Motivation and Attitude Team Building Skill Training Induction and Orientation Plant Practice Lectures Basic Engineering Lectures Plant Specialized Training Management Development On the Job Training Multi Skilling / SUPW and Mentoring

Corporate Strategic Management (CSM) CSM is a .think tank. of the organisation. The Deparment is engaged in formulation of VMO (Vision, Mission & Objectives) of the organisation and developing the strategy to achieve VMO. It has various wings which inter-alia includes Knowledge Management Cell (KM Cell). It has also developed the Corporate Plan of RINL. It takes up strategic tasks of the organisation. Town Administration & Administration
Matters relating to Land & State Civil Maintenance Electrical Maintenance Water Supply

Roads and Drain Maintenance Horticulture and Afforestation Peripheral Development and Public Health in Township (Ukkunagaram) Interact with District Authorities for various welfare activities, land acquisition

matters etc.

Medical & Health Services The Medical & Health Services Division of RINL consist of Visakha Steel General Hospital (VSGH) & Peripheral Units viz. Pedagantrya Health Centre (PGHC), Health Centre . II, Occupational Health Services & Research Centre (OHSRC), Emergency 32

Unit . I & II and Hospitals in Mines . Jaggayyapeta Limestone Mines and Madharam Mines. The special features of Visakha SteelGeneral Hospital are:
Full fledged Modern American Designed ICU and MBU capable of treating 6 patients at a time Full fledged Modern Radiology with Central A/c systems Well equipped Path. Lab with Blood bank facility Cluster type Wards & Casualty with Central Nursing Station Modern Operation Theatre comples with Shadowless cold lights and 100% bacterial free A/c system

Directorate of Commercial Marketing Department VSP has 23 no of Branch Sales Offices all over India and five Regional Offices viz. North Delhi, South - Chennai, West - Mumbai, East - Kolkata and Andhra Visakhapatnam. Main Activities of the Marketing are as follows :
Collecting Market feedback and Customers requirements for the preparation of Annual Sales Plan in coordination with Works Department, for the sale of Pig Iron, Steel and

Prepration of Marketing Policies. Finalisation of MOUs, Spot sale agreements etc, in Domestic and Export Markets. Preparation of Monthly Rolling Plans in coordination with Works Department for meeting the sale commitments. Processing of Materials like straightening of coils, cutting, bending, bundling, packaging etc. at the plant premises and in the branches to meet customers requirements. Dispatch of products to various stockyards by road or rail or to customers from the plant on direct dispatch basis. Operation of the contracts for transportation of products by road and stockyard handling/ consignment agency contracts for domestic sales, stevedoring contracts and third party inspection agency for exports. Sale of products at branches, Headquarters and on direct dispatch basis to the customers in domestic markets and on Ex-works and fob Visakhapatnam basis in exports subject to tying up of commercial and financial terms and conditions. Ensure documentation as per the procedures and as per the statutory requirements.


Rendering after sales services, obtaining customer feedback and Customer Relations Management. The details/information on the following aspects of Marketing are available in, Marketing Module.

a. Rolling Plan b. Products c. Prices d. Exports e. Network f. Customer Relation Further, five Consignment Sale Agencies are also functioning at Jamshedpur, Raipur, Pondicherry, Jammu and Guwahati.

Materials Management Department

Procurement of all materials such as Raw-materials, Spares and consumables required for the entire Plant Operations. To enter into long term agreements for supply of major & minor raw-materials with indigenous and imported suppliers. To affect economy in the cost of materials by Purchasing materials of the right quality, in the right quantity at the right time from the right source at the right place. To arrange inspection of materials prior to handing over to Production Units to ensure quality materials only are issued to Production Units. Storage of materials & issue the same to the Production Units as per their requirement. To develop and encourage ancillary industries so that the availability of the materials at right time is ensured.

Directorate of Finance & Accounts

Making arrangement for long term fund requirements. Accounting of all monetary transactions and preparation of financial statement of the company and getting the same audited as required under law. Maintaining records with regard to the cost of products produced by the company. Release of payments to suppliers/providers of goods and services. Release of salaries to the employees. According concurrence to proposals for investments & expenditure as per the policies, procedures and the Delegation of Powers. Conduct Internal Audits, Stock Verification and Statutory compliance. Making working capital arrangements. Submission of periodical reports to banks as per their sanctioned terms.


Organizing for payment of Central Excise, Sales Tax, Income Tax and other statutory payments.

Co-ordination with statutory Auditors and Government Audit. Generation of various MIS reports pertaining to F&A department for Management Information and Control. Payments.

Directorate of Operations Mines Brief about Captive Mines of Visakhaptanm Steel Plant
Madharam Dolomite Mine (MDM)

MDM is located at Madharam village in Singareni Mandal of Khammam District, A.P. The mining lease is for exploitation of Dolomite covering an area of 384.46 Hectares for about 20 years. The lease area is a captive source for Rashtriya Ispat Nigam Ltd (RINL) / Visakhapatnam Steel Plant (VSP) for use of Dolomite in its Iron and Steel making processes. The area is situated at a distance of 16 Km from the Ywellandu . Mehaboobabad road taking diversion at Mukundapuram to the area. The present mining lease is valid upto 13.07.2020. A railway line of 7.165 Km distance was constructed from the lease area adjoining at Karepalli Junction. The lease is in operation from 1989 onwards for transportation of Dolomite to VSP covering a distance of 510 Km from the area. A township consisting of 225 dwelling units of all categories with modern amenities was constructed with in the lease area. A DAV School, hospital, hostel, Community Welfare Centre, Shopping Complex, Parks and an Open Air Auditorium were also provided in the township. A Guest House of 4 rooms was also provided in the township. The capacity of the mine is to produce 7,80,000 tonnes of Dolomite per annum. The employee strength is 203 of different categories. The present Dolomite reserve is 31.03 million tones. It is an open cast mechanized mine of VSP to cater to the requirement of Dolomite.
Jaggayyapeta Limestone Mine (JLM)

Jaggayyapeta Limestone mine (JLM) is located 5 Km south . West of Jaggayyapeta connected by a black . Top road in Krishna District, A.P. This is a captive mine of VSP to cater to the requirement of BF Grade Limestone of VSP. The mining lease has been granted by Govt. of A.P. covering an area of 1295 Hectares out of which 900 Ha is forest land and 395 Ha is acquired private lands. The lease is valid upto 35

07.08.2020. This mine is an open cast mechanized mine with a capacity of 4,50,000 tonnes of BF Grade Limestone per year. A Township having 226 quarters of all categories with modern amenities was constructed. Schools hospital, hostel, Community Welfare Centre, Shopping complex and an Open Air Auditorium were also provided in the Township. A four . roomed Guest House was also provided. The Limestone reserve of 130 million tones is occurring in the area. The total strength of employees is 133. The Limestone is dispatched by a goods train covering a distance of 450 Km to VSP from the lease area.
Garbham Manganese mine (GMM)

Garbham Manganese mine (GMM) is a captive source for manganese ore for VSP. It is located 16 Km away from Garividi connected by the black . Top road in Merakamududam Mandal, Vizianagaram District, A.P. There are two mining leases adjacent to each other covering an area of 264.54 Hectares. The present reserve of Manganese is 7,03,760 tonnes as on 01.01.2008 with a life of 46 years producing 15,000 tonnes per annum. The area is equipped with a store house, maintenance shed and vocational training centre. The total employeesstrength is 31 including contractual lab our. The total distance from the mine to VSP is 125 Km. the annual production of the mine is @ 16,000 tonnes.
Saripalli Sand Mine (SSM)

This is a captive source for catering to the requirement of Silica sand for VSP. This is located in Champavati River near Nellimarla Mandal of Vizianagaram District, A.P. The sand is transported from this mine by trucks covering a distance of 95 Km from the area to VSP. The requirement of sand is 50,000 per annum. Loading, transportation and unloading is carried by contractual agency. Only one Junior Officer is posted to look after the mining activities of Serially sand mine. The total reserve of sand is 3,20,000 tonnes. Production, Planning and Monitoring Department
Formulation of Annual and Monthly Production Plan. Analyzing Plant performance against targets on a periodic basis and put up for information. Formulation of techno . economic norms and reviewing the same against targets periodically. Raw material requirement projection of Coal, Ore and fluxes.


Preparation of MIS on Inward and outward traffic w.r.t. incoming raw materials and outward dispatches.

Research and Development Identification of Technological Improvement scopes for various processes and plan for adoption of them by acquiring design and know-how capability.
Indigenous development of technology involving laboratory investigation. Development of new grades and products in coordination with Marketing dept. Information Technology Formulation of Organizational IT-Policy, IT-Security Policy and IT-Vision.

Identification of IT enabled projects for various processes and implement them. Budget plan and control Identification of Budget requirement under various heads. Control of the Budget and Spares, Consumables & Raw Materials Inventory. Systems and Procedures Streamlining the contract management system to ensure consistency of approach and adoption of sound principles of contract management. Ensuring the implementation and maintenance of quality management system requirements for ISO 9001:2000 Certificate. Monitoring pollution control activities of the Plant and interaction with the State and Central Pollution Control Board.

Project Division Design & Engineering Department

Liaisoning with Consultants and Government Authorities in connection with designs, specifications, approval of drawings and liaisoning work for various types of clearances. Preparation of drawings, design and specification for AMR and Non-AMR jobs. Assisting indenting departments in technical discussion with parties and preparation of technical recommendation. Layout clearances of various facilities coming in the Plant and Township. Operation of Consultancy contracts. Construction Department Exercising supervision of work at site both for quality and quantity checks. Preparation of contractors bills, processing of extra items and closure of contracts. Liaisoning with suppliers, MM department, Design & Engineering Department and Stores in connection with progress of work at site.


Arranging PAT/FAT will all concerned departments like works, design, consultants and suppliers in terms of contract and handing over the unit to works department for operation.

Contracts Department
Awarding of contract from the point on receipt of administrative approval from indenting departments. conducting commercial discussions with parties. Arranging Tender Committee meetings and preparing recommendations for awarding work. Preparing COM/Board Note for decisions at those form. Participating in claims and arbitration proceedings. Project Monitoring Department

To monitor the physical and financial progress of all the works executed by Construction department. To monitor the progress of works executed by D&E as well as Contracts department. Preparation of various types of reports for information of Government and different levels of Management. Interaction with departments and consultant for updating the schedules and networks for Project Monitoring.

RINL/VSP-CORPORATE SOCIAL RESPONSIBILITY (CSR) In the RINL Boarding meeting held on 31st August, 2006, the allocation of budget for CSR has been enhanced up to 2 % of the Net Profit (after setting off cumulative losses and transfers etc) and accordingly it is learnt that Rs.6.8 crores is likely to be allocated to the CSR Activities for the year 2006-07. 1. Villages have been adopted under Peripheral Development schemes to improve the standards of life in neighboring villages. 2. Donation given to Charity Hospitals for purchase of equipments 3. Donation of Try-wheel Cycle for Orthopedically handicapped, Hearing Machines for Hearing impaired and medical check and providing medicines to the Physically Challenged persons 4. To construct community halls, school building, roads steel bulk cards etc., 5. Donation of Ambulance to the Police Department to handle emergency cases.


VSP AND ITS OBLIGATIONS TOWARDS WELFARE Visakhapatnam Steel Plant which has been set up under Public Sector category has a wide range welfare measures to satisfy its employees both Statutory as well as Non statutory. All those measures as envisaged under Law in different Acts are found implemented for the benefit of employees. Besides that, extensive Non-

Statutory measures are extended to employees, which have unique satisfying feature. VSP has been on the forefront in extending social security to employees on all fronts. These aspects boost the morale of employees to the great heights while they contribute their best for the plant. Although a delayed policy for promotions to its employees has been formulated by VSP, the policy is well defined and satisfactory both for Non-executives and Executives. In a nutshell, VSP is a giant organization having representative features of all Management philosophies concerning all branches. It is an open arena for making studies. MANPOWER IN VSP: The total manpower of the organization has been kept within sanctioned strength given by the Ministry. The total manpower of the Organization as follows: ADVENT OF CENTER FOR BUSINESS SYSTEMS (CBS) & CORPORATE STRATEGIC MANAGEMENT (CSM): The CBS was formulated to cater to the strategic needs of Vizag Steel. The focus of CBS is to study world-class initiative and develop suitable framework for their adoption and implementation on an organization-wide basic at VSP. CBS was inaugurated on 18th December 2003. On this occasion, a booklet on Strategies to achieve the Vision, Mission & Objectives of Vizag Steel was released. VSPs Knowledge Management portal Gnana was launched on 26 th July 2004, basically to capture and share unique experience in day to day operations. CBS has four teams to assist other departments in implementation of the initiatives identified and thus guide VSP to a chive its cherished vision of becoming a world -class integrated steel plant. The four teams are: Corporate Management; Technology & Automation; Marketing Research; Intellectual Capital Development The above teams initiate activities pertaining to implementation of various aspects of the Business Excellence model, research on the latest technological developments in the steel industry for suitable adoption and benchmarking, initiative leading to improved customer satisfaction, knowledge sharing initiatives like Knowledge

Management etc, lf Groups of employees from different areas of common interest 39

called Communities of Practices (Cops) have been initiated which promote collaboration, informationexchange and sharing of best practices among them. The CBS has been merged with Corporate Planning department and renamed as corporate Strategic Management (CSM) in order to suit the changing trends.

QUALITY, ENVIRONMENT AND OCCUPATIONAL HEALTH & SAFETY POLICY We, at Visakhapatnam Steel Plant, are committed to meet the needs and expectations of our customers and other interested parties, the occupational health and safety of our work force and to preserve the environment. To accomplish this, we will Supply quality goods and services to customers delight. Document, implement & periodically review the management including the policy, objectives and targets. Use resources efficiently and reduce waste & prevent pollution. Comply with all relevant legal, regulatory and other requirements Applicable to products, activities and processes in respect of quality, Environment, Systems

occupational health & safety and also ensure the same By contractors. Continually improve quality, environment, occupational health and Safety performance with respect to products, activities processes, services. Encourage development and involvement employees. Maintain high level of quality, environment occupational health and safety consciousness amongst employees and contract workers by education and training. ENVIRONMENT POLICY: We at Visakhapatnam steel plant, while carrying out its operations reaffirm our commitment to preserve the environment. To accomplish this, they will Document, implement, maintain and continuously review the management system. environmental Imparting Premises and


Comply with all the relevant environmental legislations, regulations, and prevention of pollution by minimizing the emission and discharge. Maintain a high level of environmental consciousness amongst employees. ENERGY POLICY: We, at Visakhapatnam steel plant, are committed to optimally utilize various forms of energy in a cost effective manner to effect conservation of energy resources. To accomplish this, we will Monitor closely and control consumption of various forms of energy through an effective energy management system. Adopt appropriate energy conservation technologies. Maximize the use of cheaper and easily available forms of energy. HR POLICY; We, at Visakhapatnam steel plant, believe that our employees are the most important resources. To realize the full potential of employees, the company is committed to: Provide work environment that makes the employees committed and Motivated for maximizing productivity. Establish systems for maintaining transparency, fairness and equality in dealing with employees. Empower employees for enhancing commitment, responsibility and accountability. Encourage teamwork, creativity, innovativeness and high achievement orientation. Provide growth and opportunities for developing skills and Knowledge. Ensure functioning of effective communication channels with employees.


CUSTOMER POLICY: VSP will endeavor to adopt a customer focused approach at all times with transparency. VSP will strive to meet more than the customer needs and expectations pertaining to products, quality, and value for money and satisfaction. VSP greatly values its relationship with customers and would make efforts at strengthening these relations for mutual benefit.

IT POLICY: RINL/VSP is committed to leverage Information Technology as the vital enabler in improving the customersatisfaction, organizational efficiency, productivity, decision making, transparency and cost effectiveness, and thus adding value to the business of steel making. Towards this, RINL shall Follow best practices in process automation & business process through IT by inhouse efforts/outsourcing and collaborative efforts with other organizations/ expert groups/institutions of higher learning, etc., thus ensuring the quality of product and services at less cost Follow scientific and structured methodology in the software development processes with total user involvement, and thus delivering integrated and quality products to the satisfaction of internal and external customers Make the most out of the sate of the art technologies in the IT field while going for the suitable cost effective IT infrastructure and software. Ensure high level of date and information security across the organization. Strive to spread IT culture amongst employees based on organizational need, role and responsibility of the personnel and facilities the objective of becoming a world class business organization. Enrich the skill set and knowledge based of all related personnel at regular interval to make employees knowledge employees.


Periodically monitor the IT investment made and achievements accrued to review their cost effectiveness. HRD GROUP KEY INITIATIVE: Inhouse training progress Nominations to external training programmes Organization research, employees satisfaction surveys & voice of employees index Organization development Membership with professional bodies Performance appraisal initiatives Human resource information system Inplant training for management students Lectures by eminent personalities Corporate presentations Interaction with professionals, academicians and consultants Knowledge Management Initiatives on Six Sigma Emancipation of women through WIPS, women development programs (spring board) Thrust on Samalochana (internal communication exercise) Pursuit of Business Excellence Model (BEM) Chairman tho Maata


TRAINING & DEVELOPMENT: RINL believes that the employees are its assets and strives to realize their potential in full for mutual advantage. The Human Resources Development involves development of the employees as a whole. The need of induction training, skill upgradation, unit training, computer related training, refresher training, foreign training, faculty development etc., are attended by the Training & Development Center while management development and attitudinal development are taken care at the Center for HRD. Training in certain specialized areas like safety, fire prevention, occupational health etc., is also taken up by departments specializing in respective fields.RINL also provides learning opportunities to individuals by nominating them to external training programmes for enhancing their knowledge. Employees are sponsored for external training programmes including seminars and competitions organized by various professional bodies and Institutes like. CII, IISI, NISSAN, ASSOCHAM, INSDAG, AIMA, NIPM, LPAI, ISTD, ICWAI, CSI, SCOPE, VSC QCFI, RDCIS (SAIL), ICA, ASCI, ESCI, XLRI, MDI, BVQI, WIPS, IIMS, CBI Academy, NPC etc.Employees are sent to other steel plants on short duration tours to find solutions to the various issues facing the company. Employees are also sent to suppliers manufacturing units/training institutes to get specific training in identified areas. MARKETING NETWORK: The company markets its products through Headquarters Marketing office and a network of Regional offices, Branch offices and stockyards located all over the country. It also takes the help of Consignment Agents and Consignment Sales agents for the marketing of its products. The exports are carried out by the export wing of Marketing Division with the help of different agencies. The company is recognized as "Star Trading House'" by the Director General of Foreign Trade, Ministry of Commerce, Government of India. The end users of the steel products manufactured at the plant include amongst others, construction industry, automobile industry, engineering industry, re-rolling industry, forging industry, cable industry, wire drawing industry, fastener industry, electrode manufacturers and railways. The company is ideally located to serve the southern Indian market and a potential export orientation due to its shore based location. Regional Managers/Branch Managers and their teams provide the front line sales force assessing the market situation and evolving suitable market strategies for meeting sales targets. 44

HUMAN RESOURCE MANAGEMENT: Human resource initiatives at VSP are closely linked to the corporate strategy of the organization. VSP has harmonious industrial relations where the entire workforce works as a well-knit team for the progress of the company. The productive environment prevailing in the company fosters an atmosphere of growth -- both for the employees and for the company. VSP has introduced multi-skill concept since inception and the employees are trained to imbibe this. VSP has adopted a system of over-lapping shifts - the first of its kind, in the industry. This system ensures smooth change-over of the shifts and uninterrupted pace of operation of the plant during the shift-change over. Another unique feature followed at VSP is the uniform working hours for the ministerial and non-ministerial employees. The labor productivity has crossed 414 tons/man/year unparalleled in the Public Sector steel industry.

ACHIEVEMENTS & AWARDS The efforts of Visakhapatnam Steel Plant have been recognized in various activities. Some of the major awards received by Visakhapatnam Steel Plant are in the area of Energy Conservation, Environment Protection, Safety, Quality, Quality Circles, Official Language Implementation (Rajbhasha), MOU, Sports related awards and a number of awards at the individual level. SOME OF THE IMPORTANT AWARDS RECIVED BY VSP ARE INDICATED BELOW: ISO 9002 for SMS and all the downstream units-a distinction in the Indian Steel Industry. Indira Priyadarshini Vrikskha Mitra Award: 1992-93. Nehru Memorial National Award for Pollution Control: 1992-93 & 1993-94. EEPC Export Excellence Award: 1994-95. CII (Southern Region) Energy Conservation Award: 1995-96. Golden Peacock (1st Prize) National Quality Award-96 IIM in the National Quality Competition 1996. Steel Ministers Trophy for Best Safety Performance-1996. Selected for World Quality Commitment Award-1997 of J*Ban, Spain. 45

Gold Star Award for Excellent performance in Productivity. Udyog Excellence Gold Medal Award for Excellence in Steel Industry. Excellence Award for outstanding performance in Productivity management, Quality & Innovation. Ispat Suresh Puraskar (First Prize) for longest Accident free period, 1991-94. Best Labour Management Award for the Govt of A.P. SCOPE Award for best turnaround for 2001. Environment Excellence Award from Greentech Foundation for energy conservation in 2002. Best Enterprise award from Scope, WIPS for 2001-02. Best Enterprise award from SCOPE for surpassing MOU targets 2003 04. ISTD Award for Best HR Practices - 2002. Prime Ministers trophy for Best Integrated steel plant 2002-03. World Quality Commitment International Star Award in the gold category conferred by Business Initiative Directions, Paris. Organizational Excellence Award for 2003-2004 conferred by INSSAN RINL has been bestowed with several national accolades in the year 2005-2006 significant among them being: National Energy Conservation Award for the 6th time in succession. National Award for Excellence in Cost management. Viswakharma Rashtriya Puraskar Awards (6 out of 32 at the national level). FAPCCI Best Industries Productivity Award. INSAAN National Award for Organizational Excellence. Best CEO Award. Ranked among Top FIFTY Indias Best Companies to Work for 2009. Ranked 2nd in Public Sector Enterprises. Ranked 6th in Manufacturing & Production category Ranked 5th in large organization category (with more than 10,000 employees). The above Awards are besides a number of at the local, regional and national level competition in the area of Quality Circles, Suggestion Schemes etc. 46

HALLMARK OF VIZAG STEEL AS AN ORGANIZATION: Today, VSP is moving forward with an aura of confidence and with pride amongst its employees who are determined to give their best for the company to enable to reach new heights in organizational excellence. At the same time, no single advantage accruing from a knowledge society is found wanting by the neighborhood community with the growth & development of a phenomenon called VIZAG STEEL existing so close to its proximity, futuristic enterprises, academic activity, planned & progressive residential localities are but few of the plentiful ripple effects of this transformation and each one of us take immense pride to uphold the philosophy of mutual (i.e., individual and societal) progress. The remarkable performance on production front coupled with prudent financial management has not only resulted in achieving significant net profits but also helped RINL emerge as a NET POSITIVE COMPANY in January, 2008 by wiping out all its accumulated losses during 2006- 07.


Statistical Information: I. Production Performance (000 Tonnes) YEAR 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

HOT METAL 3165 3485 3941 4055 3920 4153 4046 3913 3546 3900 3828

LIQUID STEEL 2909 3083 3356 3508 3560 3603 3606 3322 3145 3399 3425

SALEABLE STEEL 2507 2757 3056 3169 3173 3237 3290 3074 2701 3167 3072

Commercial Performance (Rs. Crs.)

YEAR 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

HOT METAL 3165 3485 3941 4055 3920 4153 4046 3913 3546 3900 3828

LIQUID STEEL 2909 3083 3356 3508 3560 3603 3606 3322 3145 3399 3425

SALEABLE STEEL 2507 2757 3056 3169 3173 3237 3290 3074 2701 3167 3072

Financial Performance (Rs. Crs.)

Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Gross Margin 504 690 1162 2073 2462 2383 2633 3515 1268 1282 1045

Cash Profit 153 400 975 2023 2451 2355 2584 3483 1183 825 825

Net Profit -291 -75 521 1547 2008 1251 1363 1943 934 796 797



Conceptual profile


CONCEPT OF WELFARE Welfare in organization is essential because it forms the total package on offer for the employees . The topic for this study is: How effective are the welfare measures being implemented at Visakhapatnam steel plant. The aim of this study is to be able to analyze and find out areas for improvement in the implementation of the welfare making it more effective. IMPORTANCE OF WELFARE MEASURES: Welfare measures directly relate to human resources of an organization. In the initial stage of industrialization, welfare measures of personnel in an industry were given very less importance. The primitive concept of workers linked it is to a commodity or an intimate object without any human characteristics. This came the concept of labour as the machine, which has to be kept in a good working order with proper lubrication to enhanced production, but still regards as lifeless. There was also the goodwill concept of labour, which was the beginning of the humanization of labour from the state of commodity or a machine. But it was only the 'Citizen concept of labour that gave the workers human dignity with the right to discuss, decide and vote as a citizen of a welfare state. This concept gave rise to the philosophy of industrial democracy. As now, we are in the final stage of the partnership concern when labour is regarded as an equal and responsible partner in industry. NEED FOR WEFARE MEASURES: The real need for welfare arises from the two basic condition generally known as the long arm of he job' and the 'social invasion of the factory'. The working environment of any job in a factory or mine or a workshop imposes some adverse effect on the workers because of the heat, noise, fumes etc. involved in the manufacturing process. There are also occupational hazards and environmental problems inherent and inevitable in the manufacturing process itself, which cannot be removed or reduced. As a result productive devices and compensatory benefits have to be provided for the welfare of the workers. This can be referred to as the 'Long arm of the job', which stretches out its adverse effect on the worker, programmes, so as to make necessary suggestions for


long after his normal working hours, affecting his physical and mental well-being. Hence, the need for welfare services within the factory or work place is felt.

Regarding the aspect of 'social invasion of the factory' when a worker comes to his working place, he is not an isolated individual but a member of society having family members. A worker need to be satisfied in regard to his culture and living environment. Hence the imperative needs to provide a welfare services to satisfy his personal and family needs is felt.

Welfare to employees of VSP is provided under statutory provisions .The prominent among them are: 1. 2. 3. 4. 5. 6. 7. 8. 9. Factories Act, 1948. Mines Act, 1952 Workmen's Compensation Act 1923. Maternity benefits Act, 1961. Employee's State Insurance Act, 1948. Contract Labour (R & A) Act, 1970. The Equal Remuneration Act, 1976. Child Labour (Prohibition and Regulation) Act, 1986. Limestone, Dolomite Welfare Fund Act, 1972.

10. Iron Ore Mines, Manganese Ore Mines & Chrome Ore Mines Welfare fund Act, 1976. 11. A.P. Labour Welfare Fund Act 1987. 12. Employee's Provident Fund and Miscellaneous Provisions Act, 1952. 13. Payment of Gratuity Act 1972.


WELFARE AMENITIES: Welfare has been given the utmost emphasis in the overall policy of Human Resource Management of the company. Pursuant to this policy, VSP has taken several initiatives for introducing and implementing Nonstatutory welfare which impart and propagate the feeling that the company cares for its employees.



The Personnel Department of RINL- Visakhapatnam Steel Plant is under the leadership of Shri Y R Reddy, Director (Personnel). The HR Policy of the Company is as follows: We, at Visakhapatnam steel plant, believe that our employees are the most important resources. To realize the full potential of employees, the company is committed to: Provide work environment that makes the employees committed and Motivated for maximizing productivity. Establish systems for maintaining transparency, fairness and equality in dealing with employees. Empower employees for enhancing commitment, responsibility and

accountability. Encourage teamwork, creativity, innovativeness and high achievement orientation. Provide growth and opportunities for developing skills and Knowledge. Ensure functioning of effective communication channels with employees.

There are ~ 18,000 employees at VSP, of which nearly 3,800 are executives and remaining are non-executives. Of those, ~550 executives and ~600 non-executives are under the Personnel Directorate. Executive grades are from E-1 to E-9 and for non-executives it is from S-1 to S-10. The Personnel and Training & HRD Departments are two separate departments under the same Directorate. The Personnel Department looks after the following areas:
Service Rules Appraisal System and Promotion Policy Wage Structure Allowances Advances Employees Motivation and Welfare Schemes Retirement Benefits and other Miscellaneous Rules


The Sections of Personnel Departments are located in the Administrative Building and Plant Personnel. In the Plant Personnel, there are 10 Zones and in each Zone there is a Section of Personnel Department which caters to the need of employees in the nearby departments. The Personnel Department maintains an online Portal. This portal helps the employees in getting better service and information.

WELFARE MEASURES AT A GLANCE The details of Various Welfare schemes prevailing in Visakhapatnam Steel Plant are furnished below:I. STATUTORY WELFARE MEASURES:-

1) As per Factories Act, 1948

a) Canteen Facilities b) Baby Crche c) First Aid Appliances, Ambulance Room d) Water Coolers e) Facilities for sitting f) Urinals and Latrines g) Safety Provisions h) Welfare Officers i) Safety Officers j) Leave facilities k) Washing Facilities l) Facilities for storing and drying clothing m) Shelters, Restrooms & Lunch rooms 2) Welfare amenities as per Mines Act for employees working in Mines 3) Gratuity as per the provisions of Payment of Gratuity Act. 4) Contributory Provident Fund and Miscellaneous Act, 1952. 5) Pension as per employees Pension Scheme, 1995. 6) Workmen Compensation as per Workmens Compensation Act, 1923 7) Welfare measures for Contract Labour as provided in the Contract Labour Act, 1970 54

8) Maternity Leave as per Maternity Benefit Act, 1961. 9) The Bonus as per Payment of Bonus Act, 1965. NON-STATUTORY WELFARE MEASURES 1. Medical Facilities for employees and dependent family members, retired employees and their spouses. 2. 3. 4. 5. 6. 7. 8. Educational facilities Scholarships to the meritorious children of employees of VSP Housing facilities Work dress Conveyance advance / Allowance to employees House building Advance Motivational Schemes like Jawaharlal Nehru Awards, Suggestion Reward Scheme Incentive Scheme etc. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Employees Consumers Cooperative Society. Cooperative Thrift & Credit Society. Recreational Facilities through Community Welfare Centres Sports facilities Group Savings Linked Insurance (GSLI) Group Personal Accident Insurance Scheme (GPAI) Contribution from Incentive earnings Traveling Expenses on Retirement. Death Relief Scheme Mediclaim Insurance policy for retired employees Superannuation Benefit Fund Employees Family Benefit Scheme.


Welfare Measures In VSP In Detail

The following is the data collected about the welfare measures at Visakhapatnam Steel Plant. Since this data has been collected from the past records and organizations policy statements, this data constitutes the secondary data.

1) Statutory welfare measures 2) Non Statutory welfare measures

Statutory Welfare Measures


a) Canteen Facilities: (Section 46): The State government may make rules requiring that in any specified Factory wherein more than two hundred and fifty workers are ordinarily employed, a canteen or canteens shall be provided and maintained by the Occupier for the use of the workers. Without prejudice to the generality of the foregoing power, such rules may be provided fori. ii. The day by which such canteen shall be provided The standards in respect of construction, accommodation, furniture and other

requirement of the canteen the food stuffs to be served therein and the charges which may be made. iii. The constitution of managing committee for the canteen and representation of the workers in the management of the canteen; the items of expenditure in the running of the canteen which are not to be taken into account in fixing the cost of food stuffs and which shall be borne by the employer; vi. The delegation to the Chief Inspector, subject to such conditions as may be

prescribed, of the power to make under the clause. Canteen facilities in VSP have been organised through the operation of 16 Canteens eventhough the requirement under statute is to operate only 7 canteens. Out of these, 14 are located inside the Plant and 2 outside the Plant. These Canteens cater to the needs of employees by providing breakfast, tea, lunch and evening snacks at fixed rates which have been in vogue for the last 5 years. Besides this, through a 56

system of extension points, tea and snacks are made available to the employees in different shifts in the Shop Floor itself. For this purpose, there are 127 extension points at 55 locations through out the Plant. RINL/VSP has been extending

Canteen Subsidy to the employees @ Rs.18/- per day of actual attendance (50% of the price of specified food items i.e. one meal, one snack, one coffee and one tea per day), subject to a minimum of Rs.80/- per month, as per the terms of the Tri-

partite Agreement entered into with the Recognised Union. The annual expenditure on canteen subsidy payable to all employees comes to around Rs.9.00 crores. Apart from this, an additional expenditure of Rs.90 lakhs per annum is being spent for running and maintaining the 16 canteens on the existing rates and for providing services at the extension points. The affairs of the canteen are managed by a bipartite committee (Canteen Managing Committee) consisting of five representatives from the Recognised Union and five from the Management. Canteens of VSP have been assessed under Occupational Health & Safety Management System and found to be in accordance with the requirements of the standards of OHSAS 18001:1999.

Minimum Dining Space Required For 2550 at a time = 2,550 * 10 sq. Ft. one canteen in VSP is having 340.56 sq. Mts. = 340.56 * 10.76 sq. Ft. = 3, 3664.43 sq. Ft. Total dining space required = 7 canteens Dining space of one canteen 3,664.43 sq. Ft. Therefore, 7 Nos. canteens are statutory canteens. Canteen Subsidy: Year Amount / Per Annum Extension canteen expenditure Amount per annum 2006-07 2007-08 2008-09 8.38 Crores 8.40 Crores 8.02 Crores 58,98,240/58,98,240/58,98,240/-

b) Creches (Section-48):

In every factory where in more than 230 women workers are ordinarily employed, there shall be provided and maintained a suitable room for the use of children under the age of 6 years of such women. Such rooms shall provide adequate accommodation shall be adequately lighted and ventilated. Shall be under the 57

maintained in a clean and sanitary condition and shall be under the charge of women trained in the care of children and infants. Ins. by Act 94 of 1976 (w.e.f.26-10-1976) A Baby Creche for the children of Women Employees is being operated inside the Plant. The creche is under the care of trained personnel, who look after the needs of the babies in the creche like provision of milk, water, biscuits, play toys etc.
c) First Aid Appliances, Ambulance Room (Section 45):

There shall, in every factory, be provided and maintained, so as to be readily accessible during all working hours first aid boxes or cupboards equipped with the prescribed contents, and the number of such boxes or cupboards to be provided and maintained shall not be less than one for every one hundred and fifty workers ordinarily employed (at any time) in the factory. Nothing expect the prescribed contents shall be kept in a First Aid Box or cup board. Each FirstAid box or cupboard shall be kept in the change of separate responsible person (who holds a certificate in FirstAid treatment recognized by the State Government) and who shall always be readily available during the working hours of the factory. In every factory wherein more than five hundred are ordinarily employed there shall be provided and maintained an ambulance room of prescribed size, containing the prescribed equipment and in the charge of such medical and nursing staff as may be prescribed.

1) Ins. by Act 25 of 1954, S.9. 2) Subs. by ibid. For original sub section (2) 1) Subs. by Act 94 of 1976 (w.e.f. 26-10-1976) 2) Renumbered for (3) by Act 25 of 1954, s.9. 3) Subs. by Act 94 of 1976 (w.e.f. 26-10-1976) [And those facilities shall always be made readily available during the working hours of the factory.]

The Royal Commission on Labour recommended that, in the case of all factories where mechanical power is used, a First Aid box of prescribed standard, which need 58

not involve any great outlay, should be provided and maintained in different departments according to the number of workers employed on the basis to be laid down by local governments. In the Plant, Central First Aidcum-Occupational Health Centre with required facilities is in operation. In addition to this, there is one more First Aid and Gas Rescue Station near the Coke Ovens Deptt. One Ambulance in each of these First Aid Centres and one in Steel Melting Shop is available round the clock. Adequate number of First Aid Boxes with the required contents like Plaster, Scissors, Cotton rolls, Tincture Iodine, Bandage Rolls, Eye & Ear drops, local antiseptic cream, Paracetamol tablets etc. have been provided in each Shop Floor in the Plant. The boxes are under the supervision of personnel trained to give First Aid and they are regularly replenished with the required materials.
Facilities for sitting (section 44):


In every factory suitable arrangements for sitting shall be provided and maintained for all workers obliged to work in a standing position, in order that they may take of any opportunities for test which may occur in the course of their work. If, in the opinion of the Chief Inspector, the workers in any factory engaged in a particular manufacturing process or working in a particular room are able to do their work efficiently in a sitting position, he may, by order in writing, require the Occupier of the factory to provide before a specified date such seating arrangements as may be practicable for all workers so engaged or working. The State Government may, by notification in the official gazette, declare that the provision of sub section (1) shall not apply to any specified factory or class or description of factories or to any specified manufacturing process. Every factory has to provide necessary sitting

arrangements, particularly for workers who are obliged to work in a standing position. All such facilities are provided in the VSP wherever the worker is necked to sit. In the plant we not find these sitting arrangements where it is not needed.
e) Welfare officer (section 49):

In every factory wherein five hundred or more workers are ordinarily employed the Occupier shall employ in the factory such number of Welfare Officer as may be prescribed. The State Government may prescribe the duties, qualifications and conditions of service of officers employed under the sub station (1). 59

f) i) ii)

Safety officers (section 40b): In every factory Wherein, one thousand or more workers are ordinarily employed or Wherein, in the opinion of the State Government, any manufacturing process or

operation is carried on, which process or operation involves any risk of bodily injury, poisoning or disease, or any other hazard to the person employed in the factory.

The duties, qualification and conditions of service of Safety Officers shall

be such,

as may be prescribed by the State Government. The Factories Act of 1948 provides for the statutory appointment of a Welfare Officer in a factory, sec. 49 (1) and (2) of the factories Act, lay down that:

In every factory where in 500 workers or more workers are ordinarily employed the Occupier shall employ in the factory such member of Welfare Officers as may be prescribed.

The State Government may prescribe the duties, qualifications and conditions of service of officers employees under sub sec. The function of a Welfare Officer could broadly be classified under 3 areas of manpower management.

o Labour welfare o Labour Administration o Labour Relations

Coming to the welfare of the Visakhapatnam Steel Plant, there is Labour Welfare department consisting of Labour Officers i.e. 26 Welfare Inspectors one per each zone.
g) Functions of Welfare Officers:

To look after the health and welfare of workers. To look after the working conditions. To look after sanitation and cleanliness. To look after welfare amenities. 60


To look after the Workers education. Information of Welfare Committees. To implement the Welfare Acts. To look after the organizational discipline. In the administration of legislation covering industrial relations. To settle the grievances of the workers. To increase the relation between Trade Union and management.

Washing facilities (section -42):

In every factory Adequate and suitable facilities shall be provided and maintained for the use of the workers therein; Separate and adequately screened facilities shall be provided for the use of male and female workers; Such facilities shall be conveniently accessible and shall be kept clean.

The State Government may, in respect of any factory or class or description of factories or of any manufacturing process, prescribe standards of adequate and suitable facilities for washing. It was the Royal commission on labour which noted that the provision of suitable washing facilities for all employees though desirable was deficient in many factories. The worker who lives on crowded areas has inadequate facilities for washing and bathing at home provision of such facilities would add to his comfort, health and efficiency. The Commission recommended that workers engaged in dirty processes, a suitable washing place and water should be made available compulsorily.

Sec. 42 of Factories Act laid down that every factory has to provide adequate and suitable washing facilities separately for the use of male and female workers. In this regard the State Government may prescribe standards of adequate and suitable facilities for washing.


In the Visakhapatnam steel plant, very good washing facilities are provided to the employees. Each and every department has got the freezers for drinking water and washing every one conveniently.
Facilities For Storing And Drying Clothing (Section 43):


The State Government may, in respect of any factory or class or description of factories, make rules requiring the provision therein of suitable place for keeping clothing not worn during working hours and for the drying of wet clothes. It is only the Factories Act, which has incorporated such a provision Under Sec. 43 of the Act. State Government may make rules for the provisions of suitable places for keeping clothing during working hours and for the drying of wet clothes. All these facilities are being provided to the VSP employees in side the Plant. They have been provided with cupboards for storing the dresses, which is very necessary for workers.
Shelter, rest rooms and lunch rooms (section 47):


In every factory wherein more than one hundred and fifty workers are ordinarily employed, adequate and suitable shelter or rest rooms and a suitable lunchroom, with provision for drinking water, where workers can eat meals brought by them, shall be provided and maintained for the use of the workers: Provided that any canteen maintained in accordance with the provisions of section 46 shall be regarded as part of the requirements of this subsection:

Provided further that where a lunch room exists, no worker shall eat any food in the workroom. a. The shelters or restrooms or lunch rooms to be provided under subsection (1) shall be sufficiently lighted and ventilated and shall be maintained in cool clean condition. b. The State Government may

Prescribe the standards in respect of construction, accommodation, furniture and other equipment of shelters, restrooms to be provided under this section; By notification in the Official Gazette, exempt any factory or class or description of factories from the requirements of this section. Every factory employing more than 62

150 workers must provide adequate and suitable shelters or rest-rooms and lunch rooms, with provision for drinking water. But in case a canteen is maintained in accordance with the provision of sec. 46, it will be allowed to eat food in the workroom. These are to be maintained in a cool and clean condition. In VSP, all these facilities are provided to the employees for taking rest after lunch.


The aim of this Act is to provide a consolidated law relating to the regulation and safety of labour in mines. The Act provides for safety, health, and welfare amenities of persons working in mines.
(a) Drinking Water (Section-19):

In every mine effective arrangements shall be made to provide and maintain at suitable points conveniently situated a sufficient supply of cool and wholesome drinking water for all persons employed there in:

Provided that in the case of persons employed below ground, the Chief Inspector may, in lieu of drinking water being provided and maintained at suitable points, permit any other effective arrangements to be made for such supply.

All such points shall be legibly marked DRINKING WATER in a language understood by majority of the persons employed in the mine and no such point shall be situated within 10 [ten meters] of any washing place, urinal or latrine, unless a shorter distance is approved in writing by the Chief Inspector.

In respect of all mines or any class or description of mines, the central Government may make rules for securing compliance with the provisions of sub-section (1) and (2) and for the examination by prescribed authorities of the supply and distribution of drinking water.

RINL, VSP has provided 305 Nos. of Water Coolers for drinking water & facilities for washing on the Shop-Floor in the Plant.


(b) Leave:

In matters of Leave, RINL Leave Rules provide 10 days additional EL, over and above the maximum ceiling prescribed under the Factories Act subject to the employee qualifying to earn the leave. Apart from Earned Leave, the Company provides Casual Leave, Half Pay Leave/Commuted Leave, Special Casual Leave, Quarantine Leave, etc.
(c) Factories Act:

Rest-rooms, sitting arrangement, latrines, safety provisions, appointment of Welfare Officers, Safety Officers, etc are also provided as per provisions of Factories Act. Contributory Provident Fund is paid @ 12% of the wages of the employees and the fund is managed by a Trust as per Section 17 of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952. The Employees' Pension Scheme-1995

introduced by the Government of India has been implemented.

(d) Workmens Compensation:

Workmen's Compensation is being paid within the stipulated time to all the entitled employees as per the Act. As against the half monthly payment, envisaged as

compensation for temporary disablement under the Workmen's Compensation Act, an employee who gets injured by accident arising out of and in the course of his employment is given leave with full pay for the period of disablement . Further, free medical treatment is given in the Company run Hospital. In case of referral for specialised treatment outside, full expenses are borne by the Company.
(e) Contract Labour Welfare:

The welfare facilities like Canteens, Rest Rooms, Washing Places, Urinals, Latrines, Drinking Water, Crche, etc. provided by the Company are also available for the Contract Labour engaged in VSP. Besides, the above facilities medical facilities are also provided to Contract Labour by the Contractors.
(f) Conservancy (Section 20):

There shall be provided separately for males and females in every mine, a sufficient number of latrines and urinals as prescribed


3. GRATUITY AS PER THE PROVISIONS OF PAYMENT OF GRATUITY ACT 1972: Employees are paid Gratuity in terms of the Payment of Gratuity Act 1972 and as amended from time to time. Over and above the Gratuity Act, in case of death of an employee before the qualifying service of five years Gratuity is paid as follows: 1st year of service Before 5 years of service ... ... 2 months emoluments 6 months emoluments 12 months emoluments

On completion of 5 years of service

For all other cases at the time of separation from the Company, a maximum of Rs.3.50 Lakhs or amount calculated based on the service rendered by the respective individual, whichever is less, is being released towards Gratuity. The Cheques for Provided Fund and Gratuity are given to the employees on the very next date of his retirement.

4. CONTRIBUTORY PROVIDENT FUNDS AND MISCELLANCE PROVISIONS ACT 1952: The main object of this Act is to provide for Provident Fund, Employee Pension Deposit linked Insurance for employees working in Factories and other establishment. The Act contemplates a contribution by the employer towards PF. It also provides for an employee pension, out of the Contributions made by employer as prescribed in the Act and scheme. Employees are allowed to withdraw for certain specific purposes like, House building: Children's marriage/education etc.


The main object of this Act is to regulate the employment of the contract labour in certain establishment and to provide for its abolitions under certain circumstances on the advice of the Advisory Committee. The Act provides for welfare and health of contract labour including provisions relating to canteen, rest rooms, and first aid facilities. The Act enjoins the Principal Employer, the responsibility for payment of wages and compensation in case of accidents and in case of non payment of the same by the contractor.


7. MATERNITY LEAVES AS PER MATERNITY BENEFIT ACT, 1961: Maternity Leave for 12 weeks with full pay is extended to the women employees during confinement and in case of miscarriage or abortion, the entitlement of leave shall be six weeks from the date of miscarriage or abortion.

8. THE EQUAL REMUNERATIION ACT, 1976: The Equal Remuneration Act provides for payment of equal remuneration to men and women workers for their work or work of a similar nature and for the prevention of discrimination on grounds of sex, against women in the matter of employment.

9. CHILD LABOUR (PROHIBITION AND REGULATION ACT, 1976: The action prohibits the engagement of children in certain occupation and recesses, which are considered unsafe and harmful to child workers who are of a tender age, and aims at regulating the conditions of work of children in certain other employment.

10. IRON ORE MINES. MANGANESE ORE MINES & CHROME ORE MINES WELFARE FUND ACT, 1976: The object of this Act is to provide for the financing of activities to promote the welfare of persons employed in the Iron ore, Manganese ore and Chrome ore Mines. Die Act provides for establishment of joint Iron Ore, Manganese Ore and Chrome Ore Labour Welfare Fund for providing welfare facilities to the workers employed in these mines. The fund is intended to supplement the efforts of the employers to ameliorate the living conditions of labor engaged in Ore, Manganese Ore and Chrome Ore mines.

11. A.P. LABOUR WELFARE FUND ACT, 1947: The Act provides for the constitution of a fund for financing of activities to promote welfare of labour in the State of Andhra Pradesh and for the establishment of a ward for conducting welfare related activities.



(a) Eligibility for Bonus (section-8):

Every employee shall be entitled to be paid the bonus by his employer in an accounting year, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.

(b) Disqualification for Bonus (Section-9):

Notwithstanding anything contained in this Act, an employee shall be disqualified from receiving bonus under this Act, if he is dismissed from service for Fraud; or Riotous or violent behavior while on the premises of the establishment; or Theft, misappropriation or sabotage of any property of the establishment.

(c) Payment of Minimum Bonus (Section 10):

Subject to the other provisions of this Act, every employer shall be bound to pay to every employee in respect of counting year commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 8.33 % of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year.

Provide that where an employee has not completed fifteen years of age at the beginning of the accounting year, the provisions of this section shall have effect in relation to such employee as if for the words one hundred rupees, the words sixty rupees were substituted.
(d) Payment of Maximum Bonus (Section 11):

Where in respect of any accounting year referred to in Section 10, the allocable surplus exceeds the amount of minimum bonus payable to the employees under the Section, the employer shall, in lieu of such minimum bonus, be bound to pay every employee in respect of that accounting year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of 20% of such salary of wage. 67

In computing the allocable surplus under this section, the amount set on or the amount set off under the provisions of section 15 shall be taken into account in accordance with the provisions of that section.


1. MEDICAL FACILITIES: The company provides comprehensive health care scheme involving in-patient and out-patient treatment in Company run hospitals and specialised treatment at referral hospitals to the employees and their dependants. Visakhapatnam Steel Plant has established a 160-bedded ultra modern hospital Visakha Steel General Hospital (VSGH) equipped with sophisticated equipment. In addition to this, there are 4 Health Centres, i.e., one each at Mines, one at Ukkunagaram and JLM and MDM 2

one at Pedagantyada RH Colony.

Emergency Medical Care Units in the Plant premises to cater to the health needs of the employees.

The Company also extends medical facilities and specialised treatment, if required at reputed corporate hospitals like Apollo, Seven Hills, NIMS, CMC, Vellore, etc. Some of the special features of VSGH are:

Full-fledged Burns Unit, acclaimed to be best in the area. Radiology Department equipped with ATL Ultrasound Scanner, 800 mA XRay machine with image intensifier and 500 mA X-Ray machine with fluoroscopic facility.

Well equipped Pathology Lab with Haematology, Micro-biology & BioChemistry Laboratory. Laboratory, Blood Bank facilities and Histopathology

ICU equipped with bedside feather touch polychromatic modular monitoring with Central Monitoring system.

Cluster-type wards with central Nursing Station System Operation Theatres equipped with special sliding trolleys, imported operation tables with height adjustment facility and shadowless cold lights to enable surgeons to have a clear vision of operating field. 68

Well equipped Physiotherapy wing A separate Central Sterile Supply Department with modern equipment Automatic Laundry Diet Counseling Clinic for providing nutrition advice to malnourished children, diabetic patients, patients with hypertension, obesity, etc.

Occupational Health Services and Research Centre takes several measures in the area of preventive health care and attempts to ensure good health of the employees by conducting cyclical examination of the employees and constant monitoring of environmental conditions.

Highlights on medical services:

Medical camps were organised in and around the plant. Orientation on First Aid, Emergency Care and Burns management is imparted to employees. Special

programmes like AIDS Awareness Week, Pulse Polio Immunisation program, World Health Day, World Population Day, Anti-Malaria Week, Breast Feeding Promotion Week, Mothers Meet, International Nurses Day, Free Family Planning Operations, etc. were organized. Periodic medical checkup of employees under Man

Maintenance Programme are done to maintain and improve their health status.

Total annual expenditure on Medical facilities for the year 2008-09 (upto January2009) is Rs.30 Crores approximately.

Medical Reimbursement: Medical reimbursement towards expenses incurred on treatment is allowed to the employees staying in city and places other than township. In case some medicines are not available in VSGH, the expenses towards procurement of the medicines are reimbursed. Crores. Towards this, the company spends an amount of about Rs.13.28


2. EDUCATION FACILITIES: VSP's philosophy towards educational facilities is not only to benefit the children of employees but also to extend educational facilities to the wards of the people dwelling in and around the Plant and also to act as a catalyst in promoting quality education by encouraging reputed Educational Institutions like Kendriya Vidyalaya, DAVC Public School, Delhi Public School, etc. There are 9 English Medium Schools, 2 Telugu Medium Schools in and around Ukkunagaram and two Junior Colleges. There is one JDAV Public School at each of the two Mines at Jaggayyapeta and Madharam. Out of these schools, 3 schools are Aided, 3 are partialy aided, one selfrun and the rest are self-financed & self-built run schools. Among the above, 2 Telugu Medium Schools and 2 English Medium Schools provide free education. As on date (for the academic year 2008-09), 16,215 children are availing Educational facilities in the above schools. For the all round development of the children, the schools are functioning in spacious and well designed school buildings with audio visual teaching aids, well equipped laboratories, libraries and play grounds. Education in Computers is also being imparted in these schools.

A sum of Rs. 4.6 Crores has so far been spent in creation of infrastructural facilities for the schools. In addition to the above, as on date, the Company incurs a

recurring expenditure of more than Rs.9.86 Crores per annum on different activities like operational expenditure of schools Rs.5.78 Crores, reimbursement of school fee Rs.2.92 Crores, maintenance of school buildings Rs.5.09 Lakhs, transportation of school/college going children Rs.1.10 Crores, etc., during the year 2008-09 by VSP.


STUDENTS STRENGTH FOR 2012-13 Total Strength Sl.No (A) 1 2 Name of the school Fully Aided Schools Kendriya Vidyalaya, Steel Plant Visakha Vimala Vidyalayam (UN) Telugu Medium School English Medium School 3 Visakha Vimala Vidyalayam (BC Road) Telugu Medium School English Medium School (B) 4 5 6 (C) 7 8 9 (D) 10 Partially Aided Schools DAV C Public School, UNagaram JDAV Public School, Madharam JDAV Public School, Jaggayyapeta Self Run Schools Delhi Public School, Ukkunagaram Jyothi Bala Vihar (3 Branches) Arunodaya Special School Self Built Run Schools De-Paul School, Ukkunagaram ICSE AP State 11 Chaitanya Public School, Ukkunagaram AP State 12 Sri Aurobindo Ideal Public School AP State 13 Little Angels School, Ukkunagaram AP State 71 20 199 219 101 663 764 1553 439 1992 938 16 843 48 1781 64 1473 380 51 333 353 42 1806 733 93 951 54 21 739 242 516 1690 296 537 13 67 342 812 355 879 64 3 1054 162 1118 165 226 1075 1301 Children of Steel Plant employees Children of outsiders Total

Total Strength Sl.No Name of the school CBSE 14 Children of Steel Plant employees 53 Children of outsiders 302 Total 355

Siva Sivani Public School, Ukkunagaram AP State 71 6055 372 8536 443 14591



Class of study Nursery Kindergarten Class I to V Class VI to X Class XI to XII Annual charges

Rate per child per month 70/90/110/140/140/250/-

All the employees whose children are studying in recognized Schools/Schools registered under the registration of societys Act/Registered by any other statutory Body are eligible for reimbursement of School Fee at the following rates:

3. Dr. B R Ambedkar Merit Recognition Scheme : To encourage merit amongst the children VSP of employees 34 Nos. of Awards shall be given annually under Dr. B.R.Ambedkar Merit Recognition Scheme for professional category and physically/mentally challenged category of the Company. The Scholarship amount varies from ` 750/- to ` 1,500/- p.m. depending on the category of award.

In addition to the above, from the year 2005-06, Dr.Sarvepalli Radhakrishnan Merit Cash Awards for the children of VSP employees who secure admission and join IITs, IIMs , AIIMS, JIPMER, AFMC, IISc, ISI, ISM-Dhanbad, National Law Universities and Col.C K Nayudu Sports Cash Awards for the children of VSP employees who have represented the country in any event or who has won 1st 72

place in the Nationals conducted by respective Federations of India, or National School Games and Sports conducted by School Games Federation of India or Ranji or Inter-State Cricket Matches conducted by BCCI was introduced. As per these two schemes, an amount of @ ` 5,000/- each are awarded to the awardees. ` 25 lakhs budget is allocated by the Company annually for this purpose.

Year 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 4. HOUSING FACILITIES:

Dr. Sarvepalli Radhakrishnan Merit Cash Awards 14 11 14 22 27 35 57

Col. CK Nayudu Sports Awards 10 15 3 16 22 2 11

he Company has a well laid out township Ukkunagaram, consisting of 8,696 quarters with all modern amenities like water supply, underground sewerage, schooling, recreation facilities, parks, shopping complexes etc. for its employees. Various types of quarters were constructed according to BPE norms. Apart from this, there are 386 quarters at our Captive Mines. These quarters are allotted to

employees on the basis of seniority and standard rent is charged from the occupants. The housing satisfaction roughly works out to 55%. Employees who have not been allotted quarters in township are paid House Rent Allowance (HRA). Apart from providing subsidised accommodation, the Company also provides subsidized electricity and free water to all quarters. The electricity subsidy is around Rs.15.00 Lakhs per month and the water charges borne by the Company is to the extent of Rs.4.20 Lakhs per month. Township is around Rs.6.00 Crores The total annual maintenance expenditure of


5. WORK DRESS: Consequent to the Tripartite Settlement dtd.05.08.1991 with the then Recognised Union(SPEU affiliated to CITU) and as a Welfare measure, the Work Dress scheme for all Non-executives of RINL-VSP including Trainees was introduced from the year 1991-92 onwards in a phased manner. Later it was decided to extend the benefit to the Executives and Ministerial employees also. Initially an amount of Rs.540/-

including the stitching charges was given to each employee in lieu of Work Dress. Subsequently, the system of procurement and distribution of Work Dress to the employees by the Company was started from 1995-96 onwards. The Work Dress Scheme at a glance is as under: Sl. No. 1. Employees Male Work Dress material per annum Two pairs of Work Dress (Light Grey Shirting and Steel Grey Panting) Two Sarees + Two Blouse pieces(Lavender Sari & Navy Blue Blouse) Stitching Charges per annum Rs.340/-




Total annual expenditure on Work Dress is around Rs.1.40 Crores for 2008-09. Current average expenditure per employee towards Work Dress comes to around Rs.980/-.


(i) Washing Allowance Washing Allowances is given Rs.40/- along with the pay based on certification by the controlling officer that the employee has been using the uniform while on duty in clean and tidy condition. (ii) Night Shift Allowance: Employees who work form 2200 hrs to 0600 hrs are paid Night Shift Allowance as under: Category Nonunionized Supervisory cadre and Executives up to E 7 Grade 74 Rate per day Rs.45/-

Non - executives


(iii) Magazine Allowance Executives including JOs & JSOs are allowed reimbursement of expenditure towards membership fee for professional Bodies/Associations and cost of subscribing to Periodical/Journal/Magazines of the following rates on submission of a certificate annually: Category Executives in the grade of E-1 and above Executives in E-O Grade/ JOs/JSOs Rate per month Rs.250/Rs.150/-

(iv) Entertainment Allowance Executive employees are reimbursed Entertainment expenses for treating official guests as per the rates given as under based on certification: Grade JO/JSO E0-E3 E4-E5 E6 E7 E8 E9 (v) House Rent Allowance Rules House Rent Employees who have been allotted a house by company will be charged house rent at 10% of pay to standard rent whichever is lower, pay will include basic pay, personal pay, special pay, and non practicing pay, if any. House Rent Allowance i. Employees who have not been allotted accommodation by company will House Rent Allowance at the following rates: be paid Amount (Rs. Per month) 150 350 450 550 650 950 1200


Classification of cities A - 1 (Delhi/ Chennai/ Mumbai/ Kolkata Other A B 1 & B 2 C Unclassified

House Rent Allowance (Executives) 30%

House Rent Allowance (Non Executives) 30%

25% 15% 10% 10%

25% 17.5% 15% 10%

Note: 1) Payment of house rent allowance is subject to the condition that the employees bear the first 10% of their basic pay as house rent paid, and only the balance shall be reimbursed up to the limits as indicated above. 2) HRA is reimbursed only on production of valid rent receipt from the owner of the house or a certificate from the prescribed authorities on the rental value of the house (In the case of employees residing in their own house). ii. House Rent Recovery from the employees who have been allotted quarters by the company will be at the following rates of standard rates. A B (without any garage) B (with scooter garage) B (with car garage) C (with out car garage) C (with car garage) D DB 1 DB 2 Executive Flats MIG A) HB colony B) Autonagar LIG A) HB colony 45 76 99 103 50 77 80 86 117 125 215 344 300 50

B) Autonagar


(vi) City Compensatory Allowance The selling in city compensatory Allowance for different classes for both executives and no executives are as under: Basic pay/month A 1 Metro Below Rs.4000/90 125 200 300 65 95 150 240 45 65 100 180 25 35 65 120 Rs.4001 5250/Rs.5251 6499/Rs.6500/- &above Classification of Cities A B 1 B 2

(vii) Mining Allowance Mining Allowance in respect of Executives including JO / JSOs and Non-executives of RINL / VSP working in Madhraram (MDM), Jaggayyapeta (JLM), Garbham (GMM) & Sarepalli SSM (Mines) but excluding exployees of F&A, MM, Medical & Personnel working in theses mine locations as given under: Category Non-executives JO / JSOs / E-0 to E-4 E-5 and above 7. HOUSE BUILDING ADVANCES: Visakhapatnam steel plant has provided a well defined House Building Advance Scheme for the employees to help them in building or purchasing a house. This scheme is applicable to both executives and nonexecutives, except for trainees, probationers, contract workers, casual, part time & daily wage workers. The maximum limit of a house building advance is as follows, subject to availability of funds from financial institution. i. ii. Sixty months, Basic pay plus DA at the time of application. 80% of the total value of purchase/acquisition of land & house to be constructed or 80% of purchase price of ready built house. 600 800 1000 Rs. Per month



Rs.8,00,000; whichever is less.

On House Building Advances amount interest @ 4% will be charged up to an amount of Rs. 1,00,000; and if more to the interest charged by financial institution will be levied.

8. Vehicle Advances to Employees: The Company, as a welfare measure, for enabling the employees to purchase Cycle/Scooter/Car provides vehicle advance as follows: Max. amount of Advance (in Rupees) Car Scooter For the employees in S-9, 50000/- or price S-10 & S-11 grades of the vehicle, whichever is Car Advance is `3 lakhs less (or) price of the vehicle Up to E4 grade : 3 lakhs E5 & E6 grades : 5 lakhs E7 grade & above: 6 lakhs (or) price of vehicle, whichever is less Rate of Interest up to ` 30000/- : 4% above ` 30000/- : 6% up to ` 3 lakhs above ` 3 lakhs : 6% : 9.5%

So far 16,753 employees have availed Scooter advances amounting to Rs.1943.12 Lakhs and 2472 employees have availed Car advances amounting to Rs.3228.52 Lakhs. Company provides reimbursement of Local Travelling Expenses to its

employees. The rate of Local Travelling Expenses (LTE) ranges from Rs. 250/- to Rs. 450/- for two wheelers (other than cycles) and Rs.1,350/- to 1,500/- for four wheelers. Employees who do not claim reimbursement of Local Travelling Expenses are being reimbursed Travelling Expenses @ Rs.6/- per day subject to a minimum of Rs.90/-per month.

9. MOTIVATIONAL SCHEMES: (I) JAWAHARLAL NEHRU AWARD: With a view to motivating and recognising the outstanding performance employees, the JAWAHARLAL NEHRU PURASKAR AWARDS scheme is being operated in VSP every year. In the year 2009, 64

employees were honoured with these awards. In addition to the award certificate, 78

Cash award of an amount of Rs.2000/- per Non-executives and Rs.3000/- per Executives II) Suggestion Rewards: Suggestion Reward Scheme under the name Srujan

Vikas was launched in VSP in the year 1993 with the objective to provide a forum to encourage creative thinking and accord recognition to the employees. The suggestions received are evaluated by Zonal/Apex level committees and cash rewards ranging up to Rs.18,000/- are awarded to the suggestors, depending on the merit of the suggestion. Gold and Silver medals are presented to the two best suggestors who have shown maximum saving through suggestions. Creativity awards are also presented to the suggestors who have given maximum no. of rewarded suggestions.

III. Incentive Schemes: The following are the various schemes introduced by the Management from time to time to motivate employees to strive towards excellence and achieve social security with job satisfaction. a) Incentive scheme for acquiring professional qualifications b) Incentive scheme for promoting small family norms c) Special Performance rewards connected to production d) Performance Linked Benefit Schemes

10. EMPLOYEE CONSUMER COOPERATIVE STORES: Visakhapatnam Steel Plant Employees Consumer Cooperative Stores has been established in 1983 under the AP cooperative society Act 1964 to cater the needs of residents of Ukkunagaram and rehabilitation colonies. It is providing services to about 17,000 steel plant employees. The services are like essential commodities including LPG, Stationery items, Gift items, Clothing & all basic amenities. This will run on No profit No Loss basis. Hence, the members are getting the items less than the market price. The discount price is ranging from 10% to 30%. This will be run by a managing committee consisting of 9 members elected for every 5 years. Out of them, 3 are nominated by Visakhapatnam Steel Plant management and remaining are elected by members of the Store. The Store is having 29 outlets and the annual turnover is around 16 cores per annum. As a welfare measure, Visakhapatnam Steel Plant management is providing the facilities like allotment of shop on nominal rent basis i.e.Rs.1/- per month, subsidised electricity, fee water supply etc. the 79

Committee purchases the items from the dealers/manufacturers on credit basis and makes the payment within 1520 days. Hence, there is no working capital in Visakhapatnam Steel Plant.

11. COOPERATIVE THRIFT & CRDIT SOCIETY: The society was established in the year 1989 to provide financial aid to meet the expenses like purchase of home appliance, schooling, medical and other religious functions. The maximum loan amount you are providing is 1.5 lakhs & that will be recovered in 72 monthly installments. The rate of interest is 10.75%. It may vary from time to time. The society also takes as a fixed on term deposits with 9% interest. The annual turnover is highest monthly sales is 1.49 crores and the yearly sales is 16.74 crores. As a welfare measure VSP management is providing the facilities like allotment of office premises of Rs.1/- per month, subscribed electricity, free water supply. Year Turn over (lakhs) 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 1171.15 1505.20 1534.25 1572.96 1674.18 1755.81 Net profit (lakhs) 2077 1.68 1.01 1.21 3.00 4.13 8.36 11.81 13.43 11.92 12.24 20.29 sales Audit classification A A A A A A

12. RECREATIONAL FACILITIES:Ukkunagaram, the Township built for the employees of

Visakhapatnam Steel Plant, is a fast emerging as polychromatic cultural centre in the region sustaining and promoting cultures of different regions of the country symbolising "Unity in Diversity". People from almost all the regions in the country and professing different religions, live in VSP's Township in peace, amity and brotherhood. VSP has been endeavoring to make Ukkunagaram a truly Cosmopolitan Cultural Centre by encouraging and promoting various cultural activities and fine arts like music, dance,


theatre, literature etc. Towards this, the Company has taken various initiatives and some of which are listed below:


Community Welfare Centres (CWCs):

For the recreation of employees and their families and for encouraging social interactions amongst employees during off-duty hours, the Company has established a total of 9 (Nine) Community Welfare Centres located at different locations at Headquarters and its two Captive Mines with a total cost of around Rs.1.43 Crores. An amount of Rs.6.17 Lakhs is being collected annually towards membership fee from the employees residing in the placed at the disposal activities. of respective areas of CWCs and the same is

the respective CWC Committees to pursue various

In addition, annually an amount of Rs.6.17 Lakhs is being given to the

CWCs as special grants for organising the sports and cultural activities. With a view to meet the additional needs of the recreational and cultural facilities, approval has been accorded to construct CWC-2 at Ukkunagaram with an estimated expenditure of about Rs.3.21 Crores. Additional facilities are also in anvil to construct an Open Air Stage at Trishna Grounds and to provide more facilities at CWC-1 at Ukkunagaram. b) Library: A separate Library-cum-Reading Room, built at a cost of Rs.4.50 Lakhs named after Bharat Ratna Dr B R Ambedkar was inaugurated on 17.08.1997, as part of the Golden Jubilee Celebrations of our Country's Independence for the use of Township residents. c) Ukkunagaram Club & Steel Club: There is a well-equipped Ukkunagaram Club, which was constructed with an expenditure of Rs.89.00 Lakhs in the year 1984. The Club is having the facilities like Multi Purpose Hall, Library, Multi-Gym, Swimming Pool, Billiards room, etc. One more club viz; Steel Club was established during the year 2003 in the township to improve the Socio-Cultural & Recreational activities.



The Company has developed seven major parks in the Steel Township, which are located at different Sectors. The Parks have been provided with adequate play 81

equipment for the benefit of the children of employees. The parks also serve as an important place for social interaction amongst the employees and their families. Recently, the following park and additional facilities in existing parks have been developed with children play equipment especially for the benefit and enjoyment of children: i) Bala Udyan at Sector-II Shopping Complex ii) 2 Jet Fountains and Boat Club at Indira Gandhi Park 13. SPORTS FACILITIES: VSP provides sports facilities to all their employees and their children. Sports departments consists of Administration Department which looks after the

maintenance of sports and a Sports Council was formed as committee which takes up decisions in selecting teams and members of the teams and sending those teams outside competitions/tournaments. Visakhapatnam Steel Plant Sports Department consists of two stadiums and one indoor stadium facilitating cricket, volleyball, throw ball, tennis, badminton etc. It also provides special summer camp for children in cricket, athletics and also yoga for all the ages. The budget allotted to the current year is Rs.15 lakhs while it was Rs.7 lakhs in the previous year. VSP Management has provided the following infrastructural facilities for sports persons to improve their skills and standards. i) Sports Complex:

A big Sports Complex was built with an expenditure of Rs.1.70 Crores, which have the facilities of big ground with Pavilion, three main turf (Cricket) wickets, three practice turf wickets, one football ground, Hockey field, one floodlit Volleyball court, one floodlit Tennis Play Court, one floodlit Basket Ball Court, 8 lane 400 mts track, etc. There is also an Indoor stadium developed for playing Volleyball, Badminton and other games. Besides the above, a very good cricket field has been developed with two turf wickets and two practice wickets and a Foot Ball field at Trishna Ground, located outside Stadium Complex. One Multi Gym has been provided for the benefit of residents of Ukkunagaram. ii) Hostel Grounds:

The following sports facilities were provided in the premises of Hostel Grounds: Two floodlight volleyball courts Beach volleyball court Ball Badminton court 82

With the above measures, VSP is identifying hidden talents in the employees and training them to bring laurels to VSP. facilities is around Rs.5.00 Lakhs. f) National Day Celebrations: The Company has been organising the following National Day and Ceremonial functions every year in a grand manner by incurring an expenditure of Rs.3.00 Lakhs: Republic Day Celebrations Independence Day Celebrations RINL Formation Day Celebrations on 18th February Dr B R Ambedkar & Babu Jagjeevan Ram Jayanthi The annual expenditure towards sports

Celebrations, etc. 14. Employees' Family Benefit Scheme: The Company has introduced an Employees' Family Benefit Scheme as a special measure of welfare for the employees w.e.f. 01.08.1995. Under the

Scheme, the last pay drawn of the employee is extended till the notional date of superannuation subject to depositing Provident Fund and Gratuity amounts accruing to the employee, on cessation of his employment on account of permanent total disablement or permanent medical unfitness and to his nominee and in case of the death of employee while in service of the Company. However, in case of death/permanent total disablement of an employee arising out of and in course of employment while on duty or death/permanent total disablement arising out of accidents while coming to duty or going back from duty within one hour before or after the end of the shift, the employee/ dependants of such employee will have the following options: a) may opt One of the dependants (wife/husband, son, unmarried daughter)

for employment and he/she may be considered for employment at the

intake point of recruitment depending on age, qualification, experience etc. OR b) The dependent may opt for monthly payment equivalent to the last pay drawn (Basic + DA) till the notional date of superannuation of the deceased employee

without requiring to deposit with the Company PF & Gratuity amounts earned. OR


c) The dependent may opt for a lumpsum one-time amount equivalent to (b) above at a discounted rate of 20% per annum without requiring depositing PF & Gratuity earned by the employee with the Company. The Employees Family Benefit Scheme with the above benefits is a unique social security scheme in the Country. Benefit : In case the Provident Fund and Gratuity amounts are deposited within three months from the date of death / permanent total disablement / permanent medical unfitness of the employee, such monthly payment shall commence from the day following the date of death / permanent total disablement/ permanent medical unfitness of the employee. The Scheme is with effect from 07-03-2007 Total No. availing Memberships Total No. of Running Memberships as on date Out of the availing cases, IOD Cases Out of the availing cases, closing cases Amount of monthly benefit released by the Company to the Members of EFBS per month. Total Amount of PF & Gratuity deposits with the Company under EFBS as on 28.03.2009 Rs.24.67 Crores 635 603 21 63 Rs.58.42 Lakhs

15. RINL EMPLOYEES SUPERANNUATION BENEFIT FUND: The scheme was introduced from 01.11.1995 as a special measure of employees welfare. Under the Scheme, employee who joins this Fund shall contribute a sum @ 2% of his monthly salary (i.e., Basic pay + dearness allowance) and in addition, the sum received by him as monthly payment towards incentive under the Performance Linked Benefit Scheme (PLBS). The benefits will be in the shape of annuity to be purchased out of the fund standing to the credit of the concerned retiring member of the fund. The benefit shall be payable to the employee or to the nominee as the

case may be in the following situations: a) on superannuation b) on retirement/resignation c) on becoming incapacitated prior to superannuation and on death.


16. FAMILY BENEFIT SCHEME (DEATH BENEFIT FUND): This is a voluntary Scheme. In case of death of an employee during service, the dependents of the deceased are entitled to receive an amount of Rs.85,000/(approx.), which is contributed by the employees @ Rs.5/- from the FBS members.

17. GROUP SAVINGS LINKED INSURANCE SCHEME (GSLI): Under this Scheme, employees are to contribute at specified rate to the GSLI which will be recovered through salary and remitted to LIC. At the time of

retirement/resignation/death, the amounts received from LIC will be paid to the employee/dependents. The amount of benefit ranges between Rs.0.40 Lakhs to Rs.1.60 Lakhs depending on the grade of the employee.

18. EMPLOYEE DEPOSIT LINKED INSURANCE SCHEME (EDLI): Under the Life Cover Scheme (in lieu of EDLI), the dependents of an employee are entitled to receive an amount of Rs.62,000/-

19. GROUP PERSONAL ACCIDENT INSURANCE SCHEME (GPAI): As a welfare measure, VSP has introduced Group Personal Accident Insurance Policy for the benefit of its employees covering the risks of accidental Death/Disablement arising out of accident. Under the scheme, an employee can opt for a sum insured amount upto 60 times of Basic + DA, and the risk includes payment of compensation at the specified rates (ranging from 2% to 50% of capital sum insured depending on the extent of disability) in case of disability or 100% amount of capital sum insured in case of death due to accident. Risk covers round the clock for 24 hours and it could cover anywhere in the World. As on date, 16,600 employees are covered under the policy. 20. FUNERAL EXPENSES: In case of death of an employee, the dependents are paid
Rs.2,500/- towards assistance for funeral expenses.

21. TRAVELLING/TRANSPORT EXPENSES: An employee on retiring from service is

entitled to settle anywhere in India and entitled to receive the expenditure for traveling and also for transportation of his belongings to that place.


22. MEDI-CLAIM INSRUANCE POLICY FOR RETIRED EMPLOYEES: The benefit of Hospitalisation Charges is increased from Rs.1.5 lakhs per member to Rs.3 lakhs per member per policy period (inclusive of domiciliary hospitalization benefits) and with clubbing facility between the retired employee and spouse (ie. Rs.6 lakhs) The OPD treatment amount is enhanced from Rs.4,000/- to Rs.8,000/- per member and with clubbing facility between the retired employee and spouse (ie. Rs.16,000/-). Clubbing facility has been provided between the retired employee and spouse on the ceiling of Rs.13,500/per member per policy period on

Domiciliary/Hospitalization benefit. In case of couple Rs.27,000/ The scope of Mediclaim Insurance Scheme is extended by including the category of mentally/Physically challenged children of employees separated on account of superannuation, death, total permanent disablement and Voluntary retirement. The coverage would be the same as it is for the retired employee Annual enrolment fee has been enhanced from Rs.250/- to Rs.1300/- per person. Medi-claim Insurance Policy is extended to the retired employees and their spouses, in addition to the treatment that they may avail in the Company run Hospital free of charge. An expenditure of Rs.50.00 Lakhs incurred during 2008-09 to cover the retired employees (Medi-claim Policy holders) upto 28.02.2009. So far 894 retired employees and their spouses have been covered under this scheme.

23. Long Service Award : On completion of 25 years of service, 150 gms. of Silver medal and a Certificate from the Chairman-cum-Managing Director will be awarded through Head of Department concerned. 24. FAREWELL TO SUPERANNUATED EMPLOYEES: A Gold coin weighing 10 gms. with a purity of 999.99 will be given to the superannuated employee along with the cheques for final settlement.


The T&D Center has the following facilities: 1. A modern four storied building with office rooms, class rooms, laboratories, drawing halls, library, conference hall etc. 2. A well laid out modern workshop having different sections, such as machine shop, fitting and assembly shop welding and fabrication section and conveyor model. 3. A fully air conditioned auditorium with a seating of about 310 persons. 4. A Central Library is catering to the library and information needs of the entire organization. This library is using modern scientific system for classifying various books and documents. Training Programmes includes: Foreign training. Employee Development Programme. Language classes Human Resources Development Building Motivational climate Cultural building. shop, and material handling

PERIPHERAL DEVELOPMENT: VSP as a responsible corporate citizen is conscious of its social responsibilities and has taken care to develop its surrounding areas. The premises of VSP is

surrounded by 4 Rehabilitation (RH) Colonies and 18 identified villages, amongst which, two villages, namely Dibbapalem and Devada, have been taken up for developing as Model Villages. The Peripheral Development Cell at VSP identifies the needs of the Peripheral areas and prepares plans for implementation of the requirements in a phased manner. Besides providing civic amenities, VSP has been undertaking schemes for

economic upliftment of the population by organizing various training programs and installation of cottage industries, thereby helping the villagers to enhance their income generation. Social and cultural activities are also undertaken in the

peripheral areas to develop a sense of oneness amongst the residents. In addition, care is also taken to formulate and implement Schemes under the Special Component Plan for SC/ST population and Sub-Plan for the women in line with the 9th Five Year Plan. Further, as a part of Peripheral Development programme, VSP started imparting Vocational Training in tailoring through Jan Sikshan Samsthan to 87

the women of four RH Colonies at a cost of Rs.50,000/-. In this programme, nearly 90 women from the RH Colonies have been covered. This training programme will help the economic upliftment of the women by making them self-supporting. Orders are placed by VSP on the Cottage Industry established by VSP on a regular basis, thus creating self-employment to the women-folk of the village. So far, an amount of Rs.170 lakhs has been spent on various activities under Peripheral Development Programs of the Company, both at the RH Colonies and two Model Villages.

AFFORESTATION Conservation of Environment is one of the core values of VSP. In order to create a safe and healthy environment for the inhabitants of the township and surrounding neighborhood, a comprehensive plan was prepared to afforest an area of 3,600 ha i.e., 41% of its total land area of 8827 Hectares. This isl above the prescribed national norm of 33.33%. The afforestation areas constitute block plantations inside the Plant and Township (1,630 Ha) and a peripheral green belt of 500m wide along the VSP land boundary (1,970 Ha).

The afforestation programme was launched in 1986 with an annual target of one lakh plants. But subsequently, the annual targets were enhanced and so far 34.17 lakh plants have been planted covering in an area of 3176 Hectares including the Natural Green Cover of 226 Hectares.



Findings, Analysis, Interpretation


1. Quality of food, neatness & hygiene in the canteen? QUESTION NO STRONGLY STRONGLY 1 AGREE AGREE NEUTRAL DISAGREE DISAGREE TOTAL NO. OF RESPONDENTS 20 25 35 15 5 100 PERCENTAGE 20 25 35 15 5 -


INTERPRETATION: 35% of the employees strongly agreed that the canteen facilities are hygiene way. 25% of the employees are agreed with the canteen facilities 20% of the employees felt that canteen facilities are good. 15% of the employees are disagreed with the quality of food in the canteen. 5% of the employees are strongly disagreed with the hygiene in the canteen.


2. Accessibility to first-aid facility at different departments admin building, T & DC, town admin., Agro forestry, etc? QUESTION NO STRONGLY STRONGLY 2 AGREE AGREE NEUTRAL DISAGREE DISAGREE TOTAL NO OF RESPONDENTS 20 18 40 12 10 100 percentage 20 18 40 12 10 -



INTERPRETATION: 60% of the employees strongly agreed that the first aid at the different departments is very good. 28% of the employees felt that the first aid facility in the departments are good 12% of the employees felt that the first aid facilities in the departments are not good.


3. Safety provisions of the company




INTERPRETATION: 60% of employees felt that the provisions of the company are very good. 36% of employees agreed that safety provisions of the company are better.



Pension Scheme


INTERPRETATION: 65% of the employees are satisfied with the pension scheme 17% of the employees are agreed with this scheme 18% of the employees are strongly dissatisfied with this scheme


5. Medical personnel proficiency service?




INTERPRETATION: 57% of the employees are strongly agreed with the medical personnel proficiency service 17% of the employees agreed with the medical personnel proficiency service done in the company. 26% of employees are dissatisfied with this scheme .


6. Quality of education at steel plant?



AGREE 30 30





10% 30% 11%


24% 25%


INTERPRETATION: 55% of the employees are strongly agreed with the Quality of education at steel plant 17% of the employees agreed with the Quality of education at steel plant 28% of employees are dissatisfied with this scheme.


7. Interest subsidy scheme, house building advance?


Interest subsidy
10% 30% 11%


24% 25%


INTERPRETATION: 49% of the employees are strongly disagreed with the Interest subsidy scheme, house building advance 30% of the employees disagreed with the Interest subsidy scheme, house building advance 21% of employees are satisfied with this scheme


8. Service & amenities provided by cooperative societies?


10% 30% 11%


24% 25%


INTERPRETATION: 55% of the employees are strongly agreed with the Service & amenities provided by cooperative societies 21% of the employees disagreed with the Service & amenities provided by cooperative societies 24% of employees are satisfied with this scheme


9. Amount of vehicle advances given to the employees by the company? STRONGLY STRONGLY QSTN NO 9 AGREE AGREE NEUTRAL DISAGREE DISAGREE TOTAL NUMBER OF RESPONDENTS 20 13 27 18 22 100 PERCENTAGE 20 13 27 18 22 -


INTERPRETATION: 49% of the employees are strongly agreed with the Amount of vehicle advances given to the employees by the company. 38% of the employees disagreed with the Amount of vehicle advances given to the employees by the company. 13% of employees are satisfied with this scheme


10. Motivational schemes like JN awards etc implementation?



AGREE 15 15



TOTAL 100 -

JN awards

INTERPRETATION: . 65% of the employees are strongly agreed with the Motivational schemes like JN awards etc implementation 15% of the employees agreed with Motivational schemes like JN awards etc implementation 20% of employees are satisfied with this scheme


11. Recreational facilities like clubs CWCS parks etc maintenance & services?

CWCS parks

INTERPRETATION: 70% of the employees are strongly agreed with the Recreational facilities like clubs CWCS parks etc maintenance & services 26% of the employees agreed with Recreational facilities like clubs CWCS parks etc maintenance & services 4% of employees are satisfied with this scheme


12. Sports facilities coaching ground maintenance etc?


Coaching ground

INTERPRETATION: 68% of the employees are strongly agreed with the Sports facilities coaching ground maintenance etc is good. 28% of the employees agreed with Sports facilities coaching ground maintenance etc. 4% of employees are satisfied with this scheme


13. Operation of employee family benefit scheme?


employee family benefit scheme


INTERPRETATION: 49% of the employees are strongly agreed with the Operation of employee family benefit scheme 40% of the employees agreed with Operation of employee family benefit scheme 11% of employees are satisfied with this scheme


14. Operations of group personal accident insurance? STRONGLY QSTN NO 14 AGREE AGREE NEUTRAL DISAGREE NUMBER OF RESPONDENTS 8 18 26 22 PRECENTAGE 8 18 26 22


TOTAL 100 -

26 26

Operations of group personal accident insurance


INTERPRETATION: 60% of the employees are strongly agreed with the Operation of group personal accident insurance. 40% of the employees disagreed with Operation of group personal accident insurance. 6% of employees are satisfied with this scheme


15. Employee children merit award amount no. of awards, reservations? STRONGLY STRONGLY QSTN NO 15 AGREE AGREE NEUTRAL DISAGREE DISAGREE NO OF RESPONDENTS 18 16 16 18 32 PERCENTAGE 18 16 16 18 32

TOTAL 100 -

Employee children merit award


INTERPRETATION: 50% of the employees are strongly agreed with the Employees children merit awards amount no. of awards, reservations. 34% of the employees disagreed with Employees children merit awards amount no. of awards, reservations 16% of employees are satisfied with this scheme


16. Dress code for executives & non executives?



Dress code for executives & non executives


INTERPRETATION: 60% of the employees are strongly agreed with the Dress code for executives & non executives 40% of the employees disagreed with Dress code for executives & non executives. 6% of employees are satisfied with this scheme


17. Water & electricity available? STRONGLY QSTN NO 17 AGREE AGREE NUMBER OF RESPONDENTS 17 11 PERCENTAGE 17 11


Water & electricity available


INTERPRETATION: 28% of the employees are strongly agreed with the Water & electricity. 44% of the employees agreed with Water & electricity 28% of employees are satisfied with this scheme


18. Transport facility to employees children from ukkungaram to city? STRONGLY STRONGLY QSTN NO 18 AGREE AGREE NEUTRAL DISAGREE DISAGREE TOTAL NUMBER OF RESPONDENTS 11 17 37 13 22 100 PERCENTAGE 11 17 37 13 22 -

Transport facility

INTERPRETATION: 59% of the employees are strongly agreed with the Transport facility available to employees children from ukkungaram to city. 30% of the employees agreed with Transport facility available to employees children from ukkungaram to city. 11% of employees are satisfied with this scheme



. Library facilities

INTERPRETATION: 38% of the employees are strongly agreed with the Library facilities provided in township 41% of the employees agreed with Library facilities given in township 21% of employees are satisfied with this scheme



Baby crche

INTERPRETATION: 36% of the employees are strongly agreed with the Baby crche maintenance & hygiene. 44% of the employees agreed with Baby crche maintenance & hygiene. 20% of employees are satisfied with this scheme



Incentive scheme

INTERPRETATION: 52% of the employees are strongly agreed with the Incentive scheme provided in the company. 38% of the employees agreed with Incentive scheme provided in the company. 10% of employees are satisfied with this scheme



RINL superannuation benefit fund?


INTERPRETATION: 50% of the employees are strongly agreed with the RINL superannuation benefit fund 35% of the employees agreed with RINL superannuation benefit fund provided in the company. 15% of employees are satisfied with this scheme



Procedure for grievance redressed



INTERPRETATION: 58% of the employees are strongly agreed with the Procedure for grievance redressed 34% of the employees agreed with Procedure for grievance redressed 8% of employees are satisfied with this scheme



Summary and Suggestions


FINDINGS Most of the respondents are very satisfied with the following things:

Quality of food & hygiene in the canteen. First aid at the different departments Safety provisions of the company Medical personnel proficiency and service Education in the steel plant schools. Amount of vehicle advances given to the employees by the company Service & amenities provided by cooperative societies Implementation of Motivational schemes like JN awards Recreational facilities like clubs CWCS parks etc maintenance & services Sports facilities, coaching ground & maintenance etc Operation of Employee Family Benefit Scheme & Group Personal Accident Insurance

Employees children merit awards amount, no. of awards, reservations etc Availability of Water & electricity Interest subsidy scheme, house building advance

However, the respondents are not that happy with the following things: Library facilities in township Baby crche maintenance & hygiene. Incentive Scheme provided in the company. Work Dress for non executives RINL Superannuation Benefit Fund provided in the company. Procedure for grievance redressed provided in the company.



1. Most of the employees are happy with existing Statutory Welfare Measures of the organization.

2. Respondents felt that the Non-Statutory Welfare Measures are also beneficiary to the employees as well as their family members

3. However, employees felt that there is a need for improvements in the following areas

Most of the employees felt that the Interest Subsidy Scheme should be given to executives also.

The employees felt that GPAI should be paid by the company. RINL Superannuation Benefit Fund provided by the Company should provide more fund at the time of separation

Pension Scheme needs review To maintain quality for Work Dress Incentive Scheme to be Increased Performance Related Pay may be given to Junior Level executives Grievance redress should be more transparency & should be in time.






VIZAG STEEL MANUAL & DOCUMENTS VSP Personnel Manual VSP Welfare Documents

TEXT BOOKS Personnel Management by Arun Monappa, Tata Mc Graw-HILL Dynamics of Industrial Relations in India, Dr. C B Memoria, Himalaya Pub Dynamics of Personnel Administration, MN Rudrabarava Raju, Himalaya Pub Personnel Management & Industrial Relation, RS Davr, Vikas Pub Personnel Management & Industrial Relation , Tripathi, Sultan Chand & Sons

JOURNALS Iron & Steel Technology, Association for Iron & Steel Technology Steel Times International, Dmg World Media (UK), Ltd, England Iron & Steel Review, ISR Informedia, Kolkata Steel Scenario, , Spark Steel & Economy Research Centre Pvt. Ltd., Steel & Metallurgy, Nirmalya Mukherjee, Kolkata